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  • From: Tvoivozhd <tvoivozd AT infionline.net>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Putin response, military and unlikely economic
  • Date: Mon, 06 Sep 2004 11:09:20 -0700

clhw wrote:

I may have missed it but please define "Grameen bank".
Spaseevo
Lynn


tvoivozhd---Grameen banks function only in very poor countries. They are basically NGO's operating on non-government funding. They make very small loans to individuals but as part of a group, typically ten to twenty people---all members of the group are collectively responsible for repayment of individual loans, including repayment of any individual defaults..

The loans are for business purposes only---primarily businesses that operate from the home, though in the agriculture sector they may fund things like treadle-pumps for irrigating a couple acres of market garden, grain winnowing machines, hull-removers, small flour mills and sometimes for value-added, small commercial bakeries.

Production of cooking oil is a very popular and profitable business where cooking oil has to be imported. It entails little equipment, at least in beginning stages, primarily a manual oil-extractor press, and nutritious oil-cake byproduct is fed to animals.

The list of startup enterprises is long and varied. Because of intense initial scrutiny and continual monitoring by the Grameen Bank, and all members of collectively financially responsible members of a group, losses literally do not exist. A basic departure from commercial banks, is that the loans are meant to benefit borrowers, not stockholders or thievish bank managers or the private lender extortion experts in the third world who specialize in high interest rates that traditionally have kept the poor, poor.








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