Evaluating the impact of European microfinance. The foundations

Being unable to access a loan while having to face unexpected expenses or trying to setup a small business contributes to push people into poverty or prevent them to escape it. But accessing loans which prove too expensive might also contribute to over-indebtedness and impoverishment at individual level and have serious consequences at macroeconomic level as illustrated by the subprime crisis in 2007. Poverty and social exclusion can therefore be fuelled both by the inability to access credit or the access to inappropriate forms of credit. Such difficulties also undermine economic growth and social cohesion. Conversely, poverty and social exclusion fuel financial difficulties. Low income households are the most likely to be unable to access appropriate financial services. Alongside poverty, gender, age and area of residence are also causes of financial exclusion (RFA, 2008). Tackling financial exclusion is therefore a challenging task as it is simultaneously a cause and a consequence of poverty and social exclusion (Gloukoviezoff, 2010)...