Page 27 - DIVA_4_2006_No.27

VeneSS) ill IT17 0pilliOn represent about 3 or 4% of Let us exainiiie whetlier it desei'ves to be maintaiiied
Geneva is iii an excellent tlie world's global saviiigs. is sliocking or not. First of and iiitensified.

position. When it comes to Micro-finance overall all, inicro-credit is not a
the competitiveness of represents not more thaii a charitable affair. It is an Q: Do you thtnk that
futancial centres, Geneva is total of US$ 1-2 billion, so economic activity, and micro-finance is not well
subject to a nuinber of laws yori see that it is sometl'iiiig nobody will save tlie planet perceived among the
and regulations and does that is exckided for most through charity.Anyone general public, as we tend

not control its attractive- investors, tlie market is investing iii inicro-finance to believe that it is chari-
ness. As I told you earlier, siinply too small. receives a fiiiancial retui'ii h,?

we are in a qriasi-direct tliat corresponds to tl'iis

democracy: it is tlien up to On tlie otlier hand, it is a investinent. The retiu'ii on It is not charity at all. On
the Swiss population to fast developing sector with inicro-credit invesh'nents is the contraiy, the person
vote or maintain these laws an annual growtli rate of 30 about 5 or 6% per anninn in boi'rowiiig these funds lias
or not. Each year, opiiiion to 40%. I would also say "liard" currencies andifyori to pay tlie cost of money for

polls are undertaken and that Geneva is well placed take into consideration tlie tlie loan. I do not tli* tliat
about 80% of the Swiss in this aspect as we are iisk in comparison with tra- micro-fuiance is perceived

population are in favour of located at a crossroads bet- ditional assets, it is not as a cliaritable measure and
keeping their bankiiig sys- ween Nortli aiid Soritli. You excessive. Tlius, one cai'inot tlie aiin of all the conferen-
tem as it is. Tlffs means that find here also most of tlie say that the investor is ces on inicro-fuiance is to

the Swiss are iii favorir for intei'national orgaiiations taking advantage of tlie sliow that it is a offen good
the time being of maintai- and multinationals tliat situation. The reason wliy option compared to other
ning the banking secrecy liave activities iii tlie corui- the interest rate is so lffgli investi'nents, especially for
which is the confidentiality tries ofthe "Soutli". Geneva locally is tliat iii countries individuals. Fuitlierinore,

offered to tlie clients. It lias tlie natural vocation to wliere micro-finance is investors in tliese funds feel
does not mean that the become a competence taking place, tlie aniuial that these inveshnents are
Swiss financial centre is centre for micro-finance. inflation rate can be some- riseful-and tliat is always
competitive iii all financial wliere between 50 or 100%. valuable wlien you are
activities, nevertheless we Micro-fuiance is sometMng If you have an iiiflation rate tnvestuig.
have an impoitant card to tliat can, to a liinited deg- oflOO% and an interest rate
play. ree, be a good financial of 50%, it is ahnost a gift to If inicro-finance becomes

support for developing lend money at this rate. something other than a pure
Over recent years, we liave coui'itiies. It provides tlie economic profit-oriented
been discussing iiitegration possibility of a parallel The iitterest rate is not real- investinent, then it lias no
with the Europeaii Union banking system iii countries ly a problem ii'i itself as tlie chance of succeeding. hi

and the bilateral agree- wliere the banks belong to economic returii is so lugh sumi'naiy inicro-fuiance is
ments reaclied were rather tlie State or tlie "system" in tliese countries tliat the a good way iii lielping a

positive for tlie financial and cannot play the role of box-rowers reimburse the cotmtry to set up small pri-
centre iii Switzerland. We efficient distributor of loan veiy qriickly. hi gene- vate compa+ues, to create

were able to maiiitaii'i orir financing. This is better ral, tliese loans are reii'nbur- social capital. But it lias to
major advantages. So I do peifoi'ined by NGOs and sed within a maxiimun of be based on optiinal resour-
not tli* that tlie Swiss micro-credit iiistitutions. I six to twelve montlis. The ce allocation and profit. If
financial cent'e lias lost its believe that tlffs type of added value realised is you overlook tlffs aspect it
position, nor its potential. financiiig, even if it is of qriite lffgh, as tliere is a will ti.irn orit to be a bad

On tlie contrai'y, it may liinited capacity, desei'ves general lack of capital, the- uweshnent.
liave consolidated it. to be continued ai'id Geneva refore if you have fiuids
should stand orit as one of yori can make tliem work Q: Do you think this is the

Q: Why did you agree to the centres for micro-finaii- veiy qriickly. The rates of best way to help develo-
organize the seminar last ce iii the world. repayment are in fact ping countties?
year on micro-credit? Is it lffgher iii these coruitries
an important subject for Q: Some time ago I was than iii ricli coruiti'ies; they No, tlffs is just one way.
JOu? present at a press confe- are close to 96%. For Intei'national cooperation
rence about micro-credit. instance, among the 300 lias to be tlie major source,

Yes, very mucli so. It is an I was shocked to learn leadiiig inicro-credit insti- tlien pi'ivate direct iiwest-
asset rather liinited in quan- that the interest rates rations, you will fuid that ments from multinational
tity, if I could express charged for these loans tlie reimbursement rates are compai'iies. Microfinance is
myself tliis way. In were something behveen lffgher than tbose of com- on a smaller scale.
Switzerland we manage 50 and 100%. Where is mercial banks iii rich corin-
aborit 4,000 billion Swiss the charity? tries. Tlffs shows that this is
francs, and Switzerland an impoitant exercise and

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