General Questions

Probes

1

How would you describe the loan portfolio quality of your firm in the last five years?

- What is your comment on:

Portfolio at risk?

Loan loss provisions?

Non-performing loans?

2

In your opinion, how do you perceive the role of capital structure in influencing loan portfolio quality?

- Explain how the capital structure could have affected loan portfolio quality.

- Do you believe that the financial structure of an MFI affects loan portfolio quality?

3

How do you value the contribution of the cost of capital to this firm loan book performance?

- How do you perceive the cost of capital?

- How far do these costs go, in your opinion?

- Are they mainly financial or administrational costs?

- Do you think these costs are a threat to loan portfolio quality?

4

Take me through the procedures this firm’s credit system goes through to ensure loan repayments?

- How do you identify potential credit risk?

- Do you have credit assessment tools?

- What credit assessment tools do you use?

- Do you have any credit monitoring tools?

- Does your credit policy influence loan repayments?

5

How does your firm get to know the different circumstances that surround each customer?

- Do you have connections in communities?

- Do you have a relationship with your clients beyond giving them loans?

- How often do you visit client premises?

- Do you know the kind of activities that take place in communities where your clients live?

Respondent’s signature

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