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Reforming Cameroon's Government Credit Program: Effects on Liquidity Management by Small Farm Borrowers
Author(s) -
Kamajou Francois,
Baker C. B.
Publication year - 1980
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239769
Subject(s) - outreach , loan , microfinance , market liquidity , business , government (linguistics) , interest rate , flexibility (engineering) , finance , credit history , financial system , economics , economic growth , linguistics , philosophy , management
Higher interest rates and credit limits as well as modified lending practices have been proposed to improve the performance of credit programs for small farmers in developing countries. Models based on Cameroon field data are used to generate results from such reform proposals. The results suggest that small farmer benefits could be increased by increasing credit limits and flexibility in the use of loan proceeds, while reducing default rates and expanding program outreach.