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![]() Haiti - Economy : Household debt rose 15/04/2011 10:23:02
This study shows that the use of loans increased in Port-au-Prince, after the earthquake of January 2010, while borrowing practices have slightly decreased in Leogane because of a lack of refinancing options available for usual creditors such as moneylenders, individuals and Micro Finance Institutions (MFIs). Representing 17% of loans before the earthquake, MFIs have experienced difficulties after the earthquake, which resulted in a decrease in the volume of microcredit available. Several factors explain the use of the loan: 1 - Pay the school fees; 2 - Financing economic activities due to the non-viability of small businesses 3 - Buy food, especially in Leogane. The categories of respondents, using debt as a form of "safety net". However, from a productive tool, the loans have become survival strategies or a way to maintain social and economic status of households. PI/ HaitiLibre
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