Director,
T.E.(Terry)
Manning,
Schoener 50,
1771 ED Wieringerwerf,
The Netherlands.
Tel:
0031-227-604128
Homepage:
http://www.flowman.nl
E-mail: (nameatendofline)@xs4all.nl : bakensverzet
Incorporating
innovative social, financial, economic, local administrative and productive
structures, numerous renewable energy applications, with an important role for
women in poverty alleviation in rural and poor urban environments.
"Money is not
the key that opens the gates of the market but the bolt that bars them"
Gesell, Silvio The
Natural Economic Order
Revised English
edition, Peter Owen, London 1958, page 228
Edition 12: 31 October,
2007
GRAPH SHOWING
DEVELOPMENT OF MICRO-LOANS .
THE INTEREST-FREE
LOAN CYCLE.
HOW THE ORIGINAL
SEED LOAN MONEY IS USED.
The funds recycled over the first period of ten years
are approximately Euro 16.000.000. This is a very conservative estimate.
They are made up of:
a) A payment of about Euro 0,60 per user per month
into the Cooperative Local Development Fund. Where seed funds are in the form
of an interest-free ten year loan, these
monthly payments make up the interest-free seed loan repayment. These are shown
as horizontal lines at the bottom of the micro-loans graph. They are constant.
During quarters 42-45 the amounts left for repayment UNDER THE PROJECT are
reduced to zero. However users continue to make monthly contributions on their
own account, so the recycling of funds will in practice continue. The capital
fund will build up again as shown in the micro-loans graph. It will drop again
when replacements of the original capital goods are made or the system services
extended. It will then build up for a third time to cover further collective
capital investments and so on for so long as the users continue making their
monthly contributions. Where the initial
project is in the form of a grant, the large amount of capital which has built
up in the Cooperative Local Development Fund can either be used for
interest-free micro-credit loans for productivity increase. However, project
management may also make proposals for the extension of the services available
to the users.
b) Certain capital sums such as repayments for the
gypsum composite factories, the mini-briquette manufacturing units, the buses
and vehicles, and project and maintenance reserves.
c) Repayments under the micro-loans. These are seen as
diagonal lines in the micro-loans graph. Towards the end of the project period,
payback times are shortened to ensure capital re-enters in time for repayment
of the original seed loan.
Forward: 7.70
Budget in form often required for funding applications.
Back: 7.50
General observations on the budget.
Menu group 7 work files: Financial justification.
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Complete index of the project work files.