There’s good news from the French side in today’s paper, as micro-credit aid is now available for families in need. The Collectivité signed an agreement with CDC to guarantee loans up to 3,000 euros
via the postal bank of St. Martin for successful applicants.
The reason is a considerable number of people in precarious situations who don’t qualify to borrow from a bank or other credit provider. This is to help reduce their “social inequality and exclusion.”
The latter sounds good, but one should keep in mind that it is – after all – a loan that must be paid back. The three-year term with four per cent interest seems reasonable enough.
In practice the amounts probably will tend to be lower than the maximum, such as the 150 or 300 euros mentioned, determined in consultation with a social worker. But it’s also true that a small sum of money can make a big difference in the examples given of deposits on an apartment or refrigerator.
It was stated that other financial institutions had been approached, but the fact is that these are profit-based private companies with shareholders who expect a return on investment. A semi-public sector entity like La Pôste is apparently in a better position to offer this special service.
It’s interesting for the Dutch side as well, because St. Maarten too has a Postal Savings Bank. Of course the safeguard given by CDC obviously plays a key role and other local commercial banks might have something to say about it as well, but what’s happening North of the border definitely can serve as food for thought.
