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
and
"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,
“Poverty is created scarcity”
Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th
annual NGO Conference, United Nations,
07.00 Financial justification.
GRAPH SHOWING CAPITAL INITIALLY INVESTED IN
MICRO-LOANS .
GRAPH SHOWING RECIRCULATION OF FUNDS FOR
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 35.187.642. 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 for the first three years and
payment of about Euro 0,75 per user per month into the Cooperative Local
Development Fund for the next following seven years.
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.
FROM
01.02 THE EXECUTIVE SUMMARY
Return to:
01.02 Menu of the project executive summary.
Next file :
01.03 List of drawings and graphs.
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FROM
07.00 FINANCIAL JUSTIFICATION
Forward :
07.70 Financial sources sheet for funding applications.
Back: 07.50
Observations on the budget.
Complete
index of the project.
