Microcredits in Europe and Central America: a case study

Abstract

The aim of this paper is to analyse the differences between microcredits granted in developed and developing countries, by carrying out a case study. Spain and France are chosen as examples of developed countries and Guatemala and Honduras as developing countries. The macroeconomic differences between countries and the different regulatory frameworks for microcredits will be analysed in order to find out how legislation can favour the development of microcredits. In order to study the degree of integration of microcredits, data from one of the most representative microfinance institutions in each of the countries will be analysed. The methodology used in the work has an inductive approach with qualitative and quantitative data collection to develop general theories on the effectiveness of microcredits.