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Microcredit has been in place for them. But microcredit is reserved for the small percentage of them (10% average in Venezuela) who creates or develops a micro-enterprise. What about employees of small and unemployed? What those who need a loan to go to the doctor or repair their homes devastated by the last hurricane? The idea
Raydan Solomon's idea was to use this ability of poor communities to raise capital to create "community banks". Each community member invests the same amount to form a capital. This capital is used in two forms: it is invested in equities and risk-free loans to its members. Members receive dividends from shares and have the opportunity to borrow. The first bank was established in 1998 with twelve women from the island of Margarita, Venezuela. 140 community banks have been created since. They include 10,000 members and make loans to an average of 100 Bolivares Fuertes (30 euros at the official rate). The minimum investment is what price to pay for the bank to buy a stock, ie ten Bolivares Fuertes (three euros at the official rate).
And if people do not repay not? The bank is managed entirely by the community, which is trained and assisted by FUNDEF, to be left independent. So she takes over control of the good loans. Communities being small size, the link is strong social and peer pressure is usually sufficient to ensure repayment. The figures speak for themselves because borrowers are missing just 0.5%.
Raydan Solomon joined the Ashoka network of social entrepreneurs and works to replicate its model: the system of community banks FUNDEF was established in Colombia, Bolivia, Senegal, Portugal, Spain and Brazil. The
FUNDEF working on the creation of community banks and then allowed to govern themselves so completely independent. "Some do even more news," he says. The establishment of a bank involves four steps:
Promotion.
must go to the poor explain the principle of community banks. "It's very hard to convince." People take time to understand their interest and functioning.
creation.
Those who wish to join together define the rules of the bank and control procedures. Then come the first operations. "This is the best time, when the bank proves it can work. "The formalization
.
Once the first loan made, it is to formalize the operating steps of the loan, its collection, distribution of dividends among the shareholders, so the bank can continue to operate independently.
monitoring.
FUNDEF then follows the evolution of the community bank and offers him a logistical support, academic and financial.
I do not know where to start! It will be a surprise.