US Presbyterians invest $1 million in church 'bank' to help poor

The Presbyterian Church (USA) has invested US$1 million in Oikocredit, an organization established by the World Council of Churches that assists people in poor countries start small businesses.

The investment is the largest in Oikocredit over more than a decade, the church announced earlier this week, making the 2.4-million-member US denomination the second-largest investor in the institution set up in 1975. The largest is the Church of Sweden.

"For many years the Presbyterian church has urged congregations to make investments in Oikocredit, because Oikocredit turns investments into hope," said Gary Cook, the denomination's associate director for Global Service and Witness. "Most investments make money, but an Oikocredit investment is one of the few that makes a real difference in the lives of poor and marginalised people."

Oikocredit, which functions as a cooperative society has more than $360 million in assets, and it channels loans through a network of regional offices in Latin America, Asia, Africa, central and eastern Europe.

Half of Oikcredit's outstanding capital goes to financial intermediaries known as microfinance institutions, as well as cooperatives or small and medium-sized enterprises involved in agriculture, manufacturing trade and services.

The organization supports some 400 project partners. The Presbyterian Foundation made the latest investment, purchasing Oikocredit shares with investment funds it manages for the general assembly council of the Presbyterian Church (USA).

Terry Provance, executive director of Oikocredit's US affiliate, said the denomination's investment showed a "to social-justice advocacy".

"Our interest rate is modest, but our investors are helping lift people out of severe poverty, and that produces a high social and moral reward," Provance said in a statement.

By Chris Herlinger, Ecumenical News International