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| These Cambodian women have received training in savings and loan operations, and are now managing the local village bank themselves. |
24 March 2011
ScandAsia.com
In 2007 a group of women from Finland visited a developmental project in Liberia, meeting a large number of hardworking women with a host of ideas. Given the chance to realise these plans, they could have improved the financial situations of their families, but they lacked support and access to financial resources.
In Asia, Women’s Bank is active in Cambodia and Nepal, operating primarily by financing village banks. Village banks operate in rural communities where financing services with reasonable interest rates are frequently out of reach for poor families. Village bank members are local women who, after receiving basic training in savings and loan operations, manage the bank themselves. The interest rate for loans is low and the local area benefits. Women have proved to be trustworthy clients: almost 100 percent of the loans are paid back on time.
Village bank projects are accompanied by educational programs: People are offered both counseling in financial skills and practical training such as farming cash crops or tailoring. “Merely handing out money is not a solution to poverty’, stresses Hanna Kallio, the head of communications group, “we believe that giving advice, education and a small start-up loan in the beginning will be much more effective in the long run.”
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