Microfinance development in Armenia: Sectoral characteristics and problems

摘要

The heavy-handed regulation enforced a commercialization process and as a result pushed microfinance institutions in Armenia towards a commercial logic, which diminished the importance of the social component. Sector development problems include unfair fees, limit on annual interest rate, late cooperation between credit organizations, and regulated microfinance operations. Because of the high interest rates and difficult economic situation, micro-loans do not necessarily help poor people in Armenia to escape poverty, but instead push them further down into greater poverty.