General Risk Policy

Risks are shared between the investor and microfinance institutions as follows:

  • If a strategy implies a buyback guarantee, the risk of default is assumed by the microfinance organization at the expense of the reserve fund
  • If a strategy does not imply a buyback guarantee, default risks are shared between the investor and the microfinance institution in the form of a variable interest rate
  • The microfinance organization bears risks of currency exchange rate changes under the current strategies