Self employed workers establish credit union

NSCAG News | on: Thursday, 23 October 2014

The Self Employed Workers’ Union CTCP has established a credit union for its members. The scheme is to be piloted by the Federation of Nicaraguan Transport Workers. The way the system works is that for a period of a month, every member will deposit one cordoba (equivalent to 0.02 pence) daily into a piggy bank. At the end of the month, the Federation will bring the piggy bank to the CTCP’s head office, where the piggy bank will be opened, the money counted and then deposited in the Federation’s account. The funds generated in this way will provide an alternative way for self employed workers to access credit at fair interest rates. For years, self employed workers in Nicaragua have not had access to credit via private banks, and have therefore been obliged to go to moneylenders and micro financiers in order to obtain credit, often at very high interest rates which have an extremely negative effect on family finances. Through this scheme, self employed workers will combine forces to solve one of the biggest problems they have faced to date.

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