Discussion Forum for Fair Microfinance principles

Microfinance is typically popular in emerging markets where the rules and regulations that balance the interests of various market parties are not yet in place. The high demand for microfinance creates a huge gap between demand and supply that makes the industry a sellers market in most countries. This results in a potentially vulnerable situation for those who buy microfinance services.

The Alliance for Fair Microfinance is an initiative that actively promotes customer or client interests in the microfinance industry. It aims to promote ways and means to strengthen the market position of customers. Over time, as the microfinance industry continues to develop, the market position of customers will likely be strengthened by the introduction of rules and regulations such as those that exist in mature financial markets. Until then, however, some self-regulation on the part of other stakeholders such as practitioners and investors might be considered as a prudent means to protect customer interests. This Yahoo group will serve as the forum for discussion among its supporters.

Please refer to www.fairmicrofinance.org for more information on the Alliance, its initiators, opening bids and the current subjects to be discussed. Registration as a supporter of the Alliance of Fair Microfinance is required to be permitted as a member of this discussion group. The registration form is available from the site mentioned above.

The Alliance is preparing for the launch of the first discussion period, which should commence the first week of January. It will discuss the Alliance's opening bid 'As a rule of thumb the costs of a micro-loan should not exceed a third of the loan amount in real monetary terms.' We will therefore be discussing cost price and pricing. The discussion will be held for a set period, after which a summary and concluding remarks will be posted at www.fairmicrofinance.org, for your comments.