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Investing in Micro Finance Sector in Bangladesh
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| Submitted: Mon Dec 08 2003
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Country Analysis Paper Investing in Micro Finance Sector in Bangladesh ECON201a Prof. Cecchetti 12.08.2003 In this paper we aim to evaluate Bangladesh from the point of view of a foreign investment bank, looking to invest in the micro credit (micro finance) sector. Micro credit has been a major driving force behind poverty reduction in Bangladesh since 1976. Out of a population of 135 million, 60 million people live below the poverty line and 16 million of these people have benefited from micro credit. The demand for micro finance is increasing rapidly in Bangladesh and the supply of donor funds, the main source of capital, is decreasing. As a result, the demand for foreign investment in local micro finance institutions (MFIs) is increasing. Therefore, for a foreign investor the micro credit sector in Bangladesh promises to be rewarding, not just in economic sense...
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