According to bank documents, access to finance is often cited as one of the primary obstacles for micro, small, and medium-sized enterprises (MSMEs). An International Finance Corporation report found that MSMEs in developing countries face a financing gap of about $2.1 trillion–$2.6 trillion, which is equivalent to 30%–36% of current outstanding MSME credit. The impact of the Andhra Pradesh crisis in the microfinance industry in 2010 created an acute liquidity scarcity for microfinance institutions (MFIs) throughout India. In response, ADB developed the Microfinance Risk Participation and Guarantee Program to encourage international and domestic financial institutions to increase their lending volumes to microfinance through risk participation and guarantee arrangements.
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ACCOUNTABILITY MECHANISM OF ADB
The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main