Development in Luxembourg: Microcredits, “the best tool in the fight against poverty”

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LUXEMBOURG – The House of Microfinance brought together, on Monday, the actors of this finance oriented towards development aid. The prospects remain numerous.

Editpress/Didier Sylvestre

“Inclusive finance is used every day in cooperation”, launched Franz Fayot (LSAP), Minister of Economy and Cooperation, on Monday during a meeting bringing together players in the sector at the Microfinance House. According to him, the challenge remains enormous, with “many unbanked people in the world”. Microcredit “helps certain groups, in particular women, to become autonomous”, explains the minister.

From now on, “the term inclusive finance is gradually replacing that of microfinance, even if it means roughly the same thing”, explains Jürgen Hammer, head of the Social performance task force (SPTF), one of the two entities to have signed an agreement on Monday with the government. The aim is to “provide access to those who are excluded from the banking and financial system. This obviously happens in developed countries, but also among populations on the margins in poor countries”.

“Combining finance and cooperation”

The Maison de la microfinance brings together eight players in the sector in Luxembourg. The SPTF aims to define standards used by all, “which prove that inclusive finance is a profitable financial service, while achieving social and environmental objectives, in accordance with its promises”, continues Jürgen Hammer. Christoph Pausch, of the European Microfinance Platform (e-MPF), the other signatory of a new agreement, assures us “to make different actors work together (banks, NGOs, consultants, researchers), in order to have better results in the field”. According to him, microcredits are “the best tool in the fight against poverty”.

“We must find the means to combine finance and cooperation with all means, including microfinance”, analyzes Yuriko Backes (DP), Minister of Finance. According to her, the financial center “has already evolved a lot in recent years, with green finance and soon gender bonds”. If he recognizes that the development of microfinance can serve the reputation of the country, Franz Fayot considers that “it is above all a question of a diversification of the Place. This makes a real contribution, if it is not green washing”.

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