ABSTRACT
Microfinance institutions (MFIs) are entities adopting varied legal forms that specialize in the provision of microfinance services, specifically microcredit. Many microfinance experiences are also characterized by high interest rates: MFIs face considerable operational expenses due to the high cost of capital, labour-intensive selection and monitoring processes, offering services in remote areas and for managing many loans and accounts of limited amount. The demand for microfinance in Europe is constantly growing, although estimates about current figures are very difficult to attempt. Microfinance reached Western countries mostly in the 2000s and presents distinctive characteristics. Western microfinance has also been traditionally characterized by not-for-profit orientation and non-specialized non-governmental organizations (NGOs). The European Union (EU) has looked at microfinance as an instrument to promote several of its objectives reinforced after Lisbon Treaty, including small and medium enterprises (SMEs) promotion, employment and social inclusion. Consequently, MFIs and micro-enterprises can resort to many programmes to develop their activities through various forms of funding and technical support.
