This update confirms that MFIs remain resilient. A year into the COVID-19 pandemic, liquidity concerns in the microfinance sector have not materialized as anticipated. Where loan payments moratoria ended, repayments rates have been encouraging. Disbursements are also picking up again, closer to what they used to be in the past.
As more moratoria get lifted, impact on portfolio quality, provisioning, and ultimately solvency will still need to be carefully watched.
