Have some money to spare but don’t want to give it to charity? microlux, Luxembourg’s first microfinance institution, is calling on the generosity of all to set up a guarantee fund. The fund would guarantee microloans, a portion of which would benefit from a 0% interest rate, to better support small entrepreneurs who may not have access to bank credit.
To do this, it is necessary to create a guarantee fund that will cover these loans, as they cannot be covered by European funds like the institution’s traditional interest-bearing loans.
microlux is therefore appealing to the generosity of all citizens or large institutions. Contributions will be set up in the form of donations.
“According to our current estimates, we will need an amount between €150 000 and €250 000,” said Rémy Jacob, President of microlux and former Dean of the EIB Institute. He added that microlux, since its creation in 2016, had been considering introducing a 0% loan to better support initiatives. “In the current context, there is now an urgent need to do so,” he said. “We are seeing requests coming in.”
microlux is a joint venture of the EIF (European Investment Fund), BGL BNP Paribas, ADA (Association for Development Support), ADIE (French Association for the Right to Economic Initiative) and Foyer, a Luxembourg insurance group. It has so has so far granted more than 130 microcredits leading to the creation of 100 micro enterprises and 150 jobs.
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