Roodman: Delinquencies at Grameen?

Grameen Bank seems to be going against its own accounting rule to write off bad, overdue loans a year after they become overdue, David Roodman writes on the Center for Global Development’s “Open Book Blog.” Roodman said none of Grameen borrowers’ overdue loans were written off in the past eight years. The CDG research fellow reached the figure by calculating Grameen Bank data using a formula where total write-offs equal the sum of loans at the start of the month, new disbursements and new repayments minus the total loans by the end of month.

This lack of write-offs indicates that some Grameen loans are being refinanced, where borrowers are given new loans to repay their overdue payments, Roodman writes. This shows that Grameen Bank is facing major delinquency problems, he argues.

About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.