This study has two parts. The first part analyzes the impact of micro finance on the living and workingrnconditions of women fuel wood carriers (WFCs). Descriptive statistical analysis, using primary datarncollected From a sample of 130 individual WFCs who are/were beneficiaries in either credit schemes, isrnemployed in this part of the study. While assessing this impact it also examines whether micro financerncan reduce the pressure that WFCs exert on the forest slack of the trees surrounding the city of AddisrnAbaba. The second part of the study, based on the above data, examines determinants of loanrnrepayment performance by using a probity model.rnThe results of the study indicate that the credit schemes have brought positive impact in improving thernliving and the 'working conditions of these 'women, thereby enhancing their economic empowerment.rnThis is reflected in the rise of their income, expenditure and in their shift to other alternative incomerngenerating activities afire the loan rather than engaging in fuel wood collecting, carrying and sellingrnactivity.rnThe study also indicates that micro finance only couldnâ€™t stop these women from degrading the forestrnstock of the city as those women fuel wood carriers who do not have access to credit continue with thisrnactivity. hence, integrating these 'women into forest management or fuel wood plantation 011 the onernhand and the provision of micro finance services to those WFCs who are in need of credit on the otherrnhand would be essential to resolve these problems. Moreover, to minimize further drop out of thernmember and to operate in a sustainable manner, Gasha Micro financing Share Company (GMFSC)rnshould have to carefully examine in its lending strategy the reasons for the increased dropouts of itsrnbeneficiaries and search a solution for the operational problems faced by them in running theirrnbusiness.rnThe determinants of loan repayment performance as estimated by the binomial probate model indicatesrnthat educational level is negatively related to loan repayment performance while Frequency of loanrn(repeat borrowers), supervision, suitability of repayment installment period and other income sourcesrnare found to encourage repayments and reduce the probability of loan default. Hence, these repaymentrnenhancing factors and other variable that affect repayment performance negatively should bernconsidered by GMFSC in designing a more effective loan repayment mechanism for its beneficiaries.