Global microscope on the microfinance business environment 2012

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l The country’s Microfi nance Law was passed in
2009, and it is widely deemed to provide a clear set
of rules for microfi nance operations.
l There are no clear regulations demanding that
companies must present their rates, both in the
Microfi nance Law and the earlier Commercial Banks
Law. Dispute resolution avenues are also
underdeveloped, with many Yemenis reverting to a
local shura council, comprising elders of the tribe,
for resolving disputes.
© The Economist Intelligence Unit Limited 2012
<strong>Global</strong> <strong>microscope</strong> on the microfi nance business environment 2012
Key changes and impacts since last year:
l The microfi nance sector was severely disrupted
by the unrest that engulfed the country in 2011,
and it is only just beginning to recover. Although
lending has resumed, microfi nance activity in a
number of areas, including Abyan and Taiz,
remains severely disrupted by ongoing violence.
l Although a third fi nancial entity, Al Umqi,
applied for a licence to become a regulated MFI in
2011, its application has yet to be approved.
l The SFD has set up a credit bureau for nonlicensed
MFIs. However, not all the country’s NGOs
provide regular updates to the SFD’s bureau,
despite a requirement to do so.