Citigroup aids small firms

Citigroup aids small firms

JAKARTA (JP): America's Citigroup Foundation donated on
Wednesday US$1 million to Grameen Trust in order that it can
extend its microcredit program to five countries hardest hit by
the Asian economic crisis.

Citibank's country business manager for consumer banking,
Barry Lesmana, said the grant would allow poor entrepreneurs in
Indonesia, Malaysia, the Philippines, South Korea and Thailand to
qualify for loans to establish and run small businesses.

"Indonesia and the other four countries will received $200,000
each. The loans will enable entrepreneurs who are too poor to
qualify for bank loans to borrow start-up capital and learn and
establish their own microbusinesses," Barry said.

Grameen's managing director, Latifee, said Grameen's funded
microcredit programs had disbursed funds to nearly 300,000
borrowers in 28 countries. In Indonesia, the Grameen Trust
currently supports Mitra Karya East Java, a non-governmental
organization initiated by Brawijaya University's Research Center
to provide credit to rural poor.

With an initial fund of $15,000 from the Grameen Trust in 1995
and another $50,000 in 1995, Mitra Karya reached 2,549 borrowers
as of March, with a repayment rate of 98 percent. (gis)