The Financial Express

Grameen Foundation Scotland collapses

| Updated: December 26, 2018 16:48:40

-Reuters file photo -Reuters file photo

The Grameen Foundation Scotland, a Scottish charity which provided micro-credit business loans in deprived communities, has collapsed under debts.

The initiative was launched in 2012 with the inspiration of Bangladesh's Grameen Bank, created by Nobel Peace Prize winner Prof Muhammad Yunus, reports BBC.

Prof Yunus was one of six directors of the foundation, traded as Grameen in the UK, until its collapse.

The foundation offered small loans to people unable to access mainstream financial services.

Its stated goal was "to improve the economic situation of the most financially disadvantaged in the UK, initially in the west of Scotland, on a sustainable basis".

The cash flow of the Glasgow-based foundation, which provided loans to about 1,000 people, was hit after some of its customers fell into arrears.

A provisional liquidator was appointed to Grameen Foundation Scotland after its debts became "insurmountable", according to the report published last Thursday.

Provisional liquidator Brian Milne, from business advisers French Duncan LLP, said the business had now closed with the loss of all four jobs.

Milne said, "The Grameen Scotland Foundation is unable to continue trading as its debts have become insurmountable.

"Creditors are due around £300,000 and the main reason for the financial collapse is that a number of the foundation's customer have fallen into arrears which has had a detrimental effect on the company's cash flow.

"The directors petitioned for liquidation as the company is insolvent."

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