Micro-lending market takes rising interest rates in its stride
Despite some signs of stress, the industry is confident that borrowers have the resilience to cope
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Fund managers are optimistic that the booming market for impact lending to small businesses in developing countries can survive sharp increases in global interest rates, after coming through the coronavirus pandemic relatively unscathed.
The global impact lending market has grown from $715bn at the end of 2019 to $1.164tn today, according to data from industry body the Global Impact Investing Network. This has been driven by surging investor demand for more ethically-minded investments and products that can make a positive difference to society or the environment.