Wednesday, July 20th, 2016
The launch of a pilot personal microcredit scheme in November 2015 to tackle moneylending was a significant new initiative supported by the Social Finance Foundation (SFF) during 2015.
The details are provided in the 2015 SFF Annual Report, presented to Minister for Finance, Michael Noonan, TD, at a meeting with its Board on Wednesday, July 20th, 2016.
The pilot Personal Microcredit scheme was launched in 30 credit unions last October, following publication of a joint SFF - Central Bank report on such schemes in other countries in April. It involved a range of stakeholders including the credit union movement, the Central Bank of Ireland, Citizens Information Board, MABS, the Departments of Social Protection and Finance and An Post. Loans averaging less than €500 were provided to almost 1,300 social welfare applicants. It is planned to roll out the scheme to all credit unions during 2016 and 2017.
SFF also provided the first tranche (€5m) of a €15m loan facility to its subsidiary, Microfinance Ireland, in April 2015, to fund lending of €6m to micro enterprises during 2015.
According the Brendan Whelan, CEO of Social Finance Foundation, these initiatives reflect the mission of the Foundation – “Finance for Social Good”.
A total of €12.1 million was approved in the Foundation’s core area of loans to support community-based projects and social enterprises
Following a review of loan loss provisions and with the improvement in the economy, an exceptional operating surplus of €543,000 is recorded for 2015. Reserves of €25m are ‘unchanged since inception in 2007 which represents strong financial stewardship over the most difficult period in the country’s economic history,’ the report says.
SFF provides loans through two social lending organisations, Clann Credo and Community Finance Ireland. The majority of loans (60%) were drawn down for community facilities and community sports development. Housing, environment and heritage projects absorbed most of the remainder.
Commenting on the Report, Brendan Whelan CEO said that “it is a cause of great satisfaction to see the non-financial benefits and high social impact that arise from social finance.”
“We recognise the need to further increase awareness of social finance among community organisations and social enterprises and to ensure that viable projects that cannot access mainstream borrowing for whatever reason are aware of a real and workable alternative,” he said.
ENDS
Further Information:
John Gallagher, John Gallagher consulting. Tel. 087 9369888
