Interview With NGO Regarding Village Banking - Week 6

The following is an interview conducted with the Director of a non-government organization in Suriname regarding village banking within the country. The interview took place 9/26/07. Some information has been changed to protect villages where community banking is taking place.

SB: Sarah Bergin
NGO: Non-government Organization

SB: Does village banking exist in Suriname?
NGO: Yes, village banking was introduced by the NGO (organization name removed) in certain districts in Suriname (district names removed).

SB: What villages are being targeted?
NGO: First pilot was launched in the village of Village #1. Preparations being made for villages of Village #2 and Village #3 (village names removed), while 5 more villages have been targeted in the same area on short term.

SB: How long have the programs for village banking been in existence?
NGO: Village banking system Village #1 was established in 2003.

SB: Who are the key players dealing with village banking in Suriname?
NGO: Women’s organization of Village #1 established the system. Special committee has responsibility for the system and reports to the women’s organization.

SB: What role does your organization play with village banking?
NGO: NGO (organization name removed) has assisted the local organization in establishing the system and keep it running through training and guidance.

SB: Is the government of Suriname receptive to village banking?
NGO: Not sure about that.

SB: What obstacles do you see for the success of village banking?
NGO: The need for credit cooperatives to get involved in order to reach up-scaling of the system which is now small and experimental.

SB: Are the funds for village banking coming from the village itself or are NGO’s and other organizations giving grants and loans to operate the village banks?
NGO:First system (Village #1): seed funds provided by donor organization.
Systems of Village #2 and Village #3 being established with savings of participants and small donations of individuals as seed money.

SB: Are villagers required to attend trainings in order to participate in the village bank?
NGO: Only the leadership.

SB: What interest rates are being charged to administer small loans in the village bank?
NGO: 10%. Pay back is flexible, based on arrangements on individual basis and when applicants expects incomes (harvest, sale, donations, etc.)

SB: What are your thoughts for the future of village banking?
NGO: Seek cooperation with credit cooperative (credit union name removed), in order to expand the system which works good in practice.

SB: Would your organization be willing to promote village banking in the interior as a complementary service to Microfinance?
NGO: Certainly.