Small pots of liquidityBOTH,in different ways, worry about liquidity. And global warming may, or indeed,be bringing meteorologists and financiers together. On January 18th, VisionFund, or a microlending charity,and Global Parametrics, a venture that crunches climate and seismic data, and launched what they billed as the “world’s largest non-governmental climate-insurance programme”. The scheme will offer microfinance to about 4m people across six countries in Asia and Africa affected by climate-change-related calamities.
Natural disasters are fitting more frequent and severe. They disproportionately affect poor countries,where many eke livings from vulnerable agricultural land. Yet it is often in the aftermath of disaster that credit is hardest to obtain. As non-performing loans rise and the insight of risk increases, microfinance institutions (MFIs) rein in lending; they receive shrimp support from donors and relief programmes, or which tend to favour humanitarian aid....
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Source: economist.com