Summary Box: India gov't pushes microfinance probe

AP News
|
Posted: Feb 27, 2012 1:24 PM
Summary Box: India gov't pushes microfinance probe

THE NEWS: The government of India's Andhra Pradesh state said Monday it would push prosecutors to move ahead with 76 criminal cases against employees of Indian microfinance lenders it believes were involved with driving overindebted, impoverished borrowers to suicide.

THE BACKGROUND: An Associated Press story that showed despite denials, top officials from India's SKS Microfinance, a market leader in India's microfinance industry, had information that implicated its employees in borrower suicides.

THE RESPONSE: The lenders that specialize in microfinance, small loans intended to lift up the very poor, have denied responsibility for the deaths.