Household allocation of microfinance credit in Kyrgyzstan

Angioloni, Simone; Kudabaev, Zarylbek; Ames, Glenn C.W.; Wetzstein, Michael E.

doi:10.1080/14631377.2017.1361691

Cited by 9 publications

(16 citation statements)

References 22 publications

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“…By contrast, rural households usually borrowed small amounts (less than US$1,000) from microfinance institutions, which charged higher interest rates than commercial banks (Angioloni et al 2018). During the first decade of the 2000s, microfinance was the main source of credit for rural borrowers, especially in Kyrgyzstan.…”

Section: Discussionmentioning

confidence: 99%

Selling debt: Interrogating the moral claims of the financial elites in Central Asia

Sanghera

Satybaldieva

2020

Capital & Class

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This article critically examines how banks and microfinance companies morally construed and evaluated their lending practices and income in Kazakhstan and Kyrgyzstan. Banks occupy a powerful position in a monetary economy, because they do not merely create money ‘out of thin air’, but can charge for it, that is, interest. In doing so, they obtain unearned income and extract wealth. The article examines how banks and microfinance companies used myths, ideals, discourses, norms and emotions to justify and de-politicise their unequal power, unearned income and damaging effects. The study draws on the moral economy perspective and the post-Keynesian theory of money to understand financial institutions’ moral justifications and rationalisations of their position and power. This article contributes to a wider literature on neoliberalism and morality in post-socialist economies.

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Section: Discussionmentioning

confidence: 99%

Selling debt: Interrogating the moral claims of the financial elites in Central Asia

Sanghera

Satybaldieva

2020

Capital & Class

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“…This aspect can be represented by various variables: Past studies have investigated the impact of household income (e.g. Sekyi, 2017); off-farm income, both positive (Muhongayire et al, 2013) and negative (Jia et al, 2010); household capital endowment (Duy et al, 2012); or ownership of livestock and consumption goods (Angioloni et al, 2018) on credit uptake. While the value of land holdings depends, among other things, on national land regulations and land titling systems, they are, when acting as collateral, a decisive factor for credit access (Swain, 2002).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Furthermore, about eight private banks offer rural credits at commercial rates (Japan International Cooperation Agency, 2014). Many of these credit lines feature high interest rates due to the significant transaction costs when collecting information on financial histories of small farmers (Angioloni et al, 2018). Further hindrances are collateral requirements: In formal banks, collateral is necessary if the debtor makes a down payment of less than 30% of the total value only (Japan International Cooperation Agency, 2014).…”

Section: Afrmentioning

confidence: 99%

The role of risk rationing in rural credit demand and uptake: lessons from Kyrgyzstan

Kuhn

Bobojonov

2021

AFR

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PurposeLack of access to credit is commonly held responsible for slow agricultural and rural development in low- and middle-income countries. This paper aims to investigate the contribution of demand- and supply-side factors, particularly the role of risk rationing, on credit application and uptake in the case example of Kyrgyzstan.Design/methodology/approachToward this aim, the study explores the determinants of credit behavior of 1,738 Kyrgyz sample farm households from 2013 to 2016 waves of the nationally representative “Life in Kyrgyzstan” (LIK) dataset along a hierarchical regression model, differentiating between factors influencing individual demand for credit and factors influencing supply for credit.FindingsThe results of our analysis indicate the relative importance of demand-side factors for credit applications, reflecting farmers' perceived risk of credit default and loss of collateral. Meanwhile, supply-side factors, such as real credit constraints and collateral requests, have a stronger influence on credit uptake rates and overall loan sums. These findings highlight the role of risk rationing for agricultural investment, suggesting a stronger focus of development policy on improving risk-sharing mechanisms for farmers, e.g. by developing the agricultural insurance sector.Originality/valueThe paper contributes novel evidence on the role of risk rationing in shaping the demand for formal credits for increasing agricultural and rural investment in low-income transition economies. Previous research has mostly focused on the role of credit supply, thus underrating the potential contribution of individual risk attitude, risk experience and risk sharing.

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“…About eight private banks offer rural credits (Japan International Cooperation Agency 2014). Many of these credit lines feature high interest rates due to the signification transaction costs when collecting information on financial histories of small farmers (Angioloni et al, 2018).…”

Section: Agricultural Credit In Kyrgyzstanmentioning

confidence: 99%

Education in Indonesia: Financing, Challenges of Quality and Academic Results in Primary Education

Kuhn¹,

Bobojonov²

2021

KUH

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Low access to rural credit is hampering agricultural and rural development in developing and transition economies. Credit rationing or quantity rationing, defined as insufficient credit volumes at adequate interest rates and collateral requirements, is commonly been hold responsible. This paper is researching into the contribution of demand-side factors like internal price rationing and risk rationing, in addition to supply-side factors along the case example of Kyrgyztan. Towards this aim, we explore the determinants of credit application and take-up along the nationally representative Life in Kyrgyzstan (LIK) dataset of 3000 rural households in Kyrgyzstan. The results of hierarchical analysis indicate that are restrained by demand-side factor that reflect farmers’ perceived risk of credit default and loss of collateral. Supply-side factors, such as real credit constraints and collateral requests, meanwhile have a stronger influence on credit applications and take-up rates. These findings support recent works that highlight the role of risk rationing for agricultural investment, suggesting a stronger focus of development policy on improving risk- sharing mechanisms for farmers.

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Household allocation of microfinance credit in Kyrgyzstan

Cited by 9 publications

References 22 publications

Selling debt: Interrogating the moral claims of the financial elites in Central Asia

Selling debt: Interrogating the moral claims of the financial elites in Central Asia

The role of risk rationing in rural credit demand and uptake: lessons from Kyrgyzstan

Education in Indonesia: Financing, Challenges of Quality and Academic Results in Primary Education

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