Second European Microfinance Network Conference will take place in Barcelona on October 28 and 29, 2005 European Microfinance Network where alternative credit institutions gather to discuss the supply of microcredit to people who need small entities of credit in order to escape unemployment and poverty is gathering Barcelona. The network is animated especially by the French organisation ADIE whose president is one of the main speakers. The network has been partly created projects of DG Social Policy of the EU Commission and shows special outreach in the Eastern countries. Among the speakers is also Benoit Granger from MicFin in Paris who is also member of the steering group of the coalition for responsible credit. Others are Bernd Balkenhol head of the International Labour Associations' social investment group and representatives of the EU Commission. Major Banks as well as DG Internal Market or DG SANCO seem to be absent. It is regrettable that the conference does not pay attention to the rising concerns over Microfinance in the USA and Europe where it is claimed that it deters attention from the important task main stream banks should overtake in providing equal credit for all. It also offers opportunities for neo-liberal Politician who argue that private credit schemes can save public money although the economic significance of microcredit in the world is rather low. Another important issue concerns professionalism and quality standards in alternative microcredit. Some argue that this kind of second hand banking creates market ghettos which could make it even more difficult for clients to access ordinary banking. In this respect it should also be seen critical that part of the microfinance organisations argue for higher usury ceilings in the EU and may thus pave the way also for predatory lenders. The Brussels conference on responsible credit hopefully will close this gap and discuss the quality of credit in its workshop on social banking where both sides as well as main stream bankers will be present. (for a critical assessment see papers under http://www.money-advice.net/index.php?id=49) ID: 35927 Author(s): iff Publication date: 15/09/05     URL(s): iff: critical paper microlending

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