NNA News for civil society

Using savings to help others

Sun, 31 Jul 2011 | By NNA staff


BOCHUM/MAINZ (NNA) - Doing something meaningful with your savings to help those from poorer countries: that wish can now be turned into reality with the Oikocredit savings account, a joint project of the German GLS Bank and the international cooperative Oikocredit.

Oikocredit and GLS Bank both work for a sustainable form of financial management.

“The goal of this cooperation,” explains GLS director Andreas Neukirch, “is an innovative product addressing investors who specifically want to support improving the living conditions of people in developing countries while at the same time expecting a high level of safety and market interest rates.”

“We hope that in addition to our existing members, we can make even more people excited about a safe and sustainable investment,” says Florian Grohs, director of Oikocredit Germany.

The unique concept was focused on the social effect of money, a GLS Bank press release added.

It works like this: investors open an Oikocredit savings account with the GLS Bank. The GLS Bank then grants a loan of the same value as the invested money to Oikocredit, which is then used to finance partner organisations in developing countries.

A large portion of the capital goes to microfinance organisations which award small loans to local economically active people. A smaller portion is awarded to cooperatives, fair trade organisations and small businesses.

The GLS Bank is the world’s first social and ecological universal bank. It is the only bank to offer deposits, loans, investment capital, endowment and gifting from a single source. Customers can specify with all the products in which social and ecological areas their investment should be invested.

The international cooperative Oikocredit lends money and equity in developing and emerging countries. Oikocredit offers its customers double profit - both financial and social. They receive not just a moderate financial return, but also the assurance that their money is being used to fight poverty, support fair trade and preserve the natural resources of our planet. Oikocredit was founded in 1975 and is one of the leading private development financiers.

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Item: 110731-02EN Date: 31 July 2011

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