What does Oikocredit do when a project can't repay?

There will always be projects that are not able to partly or fully repay. This may be due to external reasons like economic crises, devaluation, political instability, changing market conditions or competition. It may also be due to internal reasons, such as bad management, departure of key staff members, or even fraud.

We try to solve these problems and further support the projects by means such as additional technical assistance or rescheduling, settlement and foreclosure and, in case of fraud, legal action. This last case happens very rarely. In such cases, there is not only money at stake, but also the credibility of Oikocredit. In all lending, it is vital that borrowers take the loan provider seriously.

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