MICROFINANCE INSTITUTIONS IN TIMES OF ECONOMIC CRISIS. CASE OF REPUBLIC OF MOLDOVA

The article explores the performance of microfinance institutions during economic disruptions, highlighting their crucial role in financial inclusion and entrepreneurship. Focusing on the Republic of Moldova between 2009-2023, the study uses data from national financial bodies to evaluate key metrics, including loan growth and gross domestic product rates. Results showcase the microfinance sector's consistent growth, directly linked to economic progress and increasing credit demand. Furthermore, the sector significantly boosted financial inclusion, evident from the growing number of beneficiaries and their loan sizes. Notably, microfinance institutions exhibited robust performance during economic crises, such as the COVID-19 pandemic and the Ukraine War, sustaining continuous growth even amidst local economic contractions. However, the study also points to certain limitations, suggesting a deeper look into the effects of regulatory measures and the promise of technology-driven innovations on the sector's future.