IOM will host a two-day "Credit Fair" this weekend in the eastern
Sri Lankan town of Ampara that will bring together over 4,000
beneficiaries of its European Union (EU)-funded Community
Livelihood Support Programme (CLSP) and ten credit institutions to
discuss access to credit.

As part of the CLSP, IOM has been providing training on Access
to Credit (A2C) in Ampara District, which was badly affected by the
2004 tsunami and years of civil unrest, to educate the population
on how to take advantage of formal credit facilities.

While there are a number of institutions offering credit to
small businesses and individuals in Ampara, there is relatively
poor understanding of how they work, leading people to use informal
credit networks that often charge much higher rates, according to
IOM Sri Lanka Chief of Mission Richard Danziger.

"There are a number of low interest loan schemes tailored to the
needs of small businesses offered by banks and other lending
institutions in Sri Lanka.  Unfortunately, too many people
remain unaware of this or misunderstand how these loans work," he
says.

Some 1,080 people who participated in the A2C training are
expected to visit the "Credit Fair", which will run through
Saturday and Sunday (21-22 May) in Ampara.

"This training has helped us overcome myths about credit. 
Many of us used to think that there was a lot of paperwork, that
interest rates were too high and that big businessmen are
favoured.  Now we know this is not true.  We can save a
lot of money by using formal credit and can also receive other
business development services from banks," says one A2C
participant, who now runs a small shop in Irakkamam.

IOM's EU-funded CLSP programme, which focuses on rebuilding
social and productive infrastructure and livelihoods in Ampara
District, has implemented some 110 projects serving more than
quarter of a million residents. Some 45,000 people have been direct
beneficiaries of the programme.

For more information please contact:

Duminda Perera

IOM Ampara

Tel. 94.71.536.2989

E-mail: "mailto:dperera@iom.int">dperera@iom.int