Lambrineu Foundation Project Bank
Project title
Establishment of a micro-finance project bank for SMEs in Lhoknga
Implementing Agency, project period
moving the micro economy
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Lambrineu Foundation implements the project in close cooperation with experts from the sustainability division of the ABN-AMRO bank, the Netherlands. Project is planned to start early 2006.
Expected budget
ABN-AMRO is expected to support the project with in-kind input and funding. The expected available funding from the bank lies between 50,000.- and 100,000.- Euro. Additionally, Lambrineu has agreed with the UNDP that the ginger farmers will have to pay back the money that is used to buy their re-starting farm inputs. Loans for ginger farmers will have a 0% interest rate. The total budget for farm inputs is estimated at 270,000.- Euro. At the harvest season, this amount will be collected from the farmers and re-used (as a revolving fund) via the project bank. Finally, the budget Lambrineu received from the Dutch Plantum NL and
home industry
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the Rabo Foundation, 57,000.- Euro in total, will after pay-back by the farmers also be re-used to finance new or on-going activities. In other words: the project bank will have a working capital of between 350,000.- and 400,000.- Euro by the end of 2006.
Project activities
Lambrineu and the ABN-AMRO bank are expected to work out an institutional development plan for the project bank early 2006. The future activities of the bank, such as money lending, debt-collection, and partnering with local banks, will already be tested during the implementation of the chili and ginger projects. Small entrepreneurs with a business plan can ask Lambrineu for financial start-up support as soon as the project is operational.
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