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The Bolivian evidence shows that microfinance lending technologies are well designed to cope with different kinds of risk. The innovations provided in this financial sector show more strengths than weaknesses to overcome information asymmetries. Furthermore, group and individual loans are providing good mechanisms to cope with idiosyncratic and systemic shocks. Certainly, different microfinance technologies developed in Bolivia have shown good performance in terms of outreach and sustainability.

Shocks, Changes in Outreach and Lending Technologies in Microfinance: the Bolivian Experience