Exchange of experiences in Spain

The Fejér Enterprise Agency organized a study trip to Spain for the members of the Hungarian Microfinance Association. The delegation studied the group lending activity of the Treball Solidari Foundation.

The Székesfehérvár-based Fejér Enterprise Agency organized a one-week study trip to Mallorca, Spain for the members of the Hungarian Microfinance Association. The aim of visit was to study a special segment of the Spanish microfinancing activity, the group lending through the experiences of the Treball Solidari Foundation.

According to the representatives of the Foundation, Mallorca has a pretty unique economic situation. Each year 13 million of tourists come to visit the island which means that most of the inhabitants work in this sector in the high season. During the rest of the year, they have few incomes or they get only benefits. Recently, many immigrants have settled down in Mallorca which also causes some economic problems. Microfinancing is a good measure to boost the local employment.

The main activity of Treball Solidari is group lending, their target group is immigrants but they also want to involve local inhabitants to this model. Entrepreneurs for small groups of 6-8 people and they decide whether the members of the group can get the financing. First only one person gets the microcredit and when he/she starts reimbursing, the next member of the group can apply for financing, and so on. First they receive only small amounts of money, from a couple of hundred to maximum 3000 EUR. After reimbursing completely the money, the client is entitled to get higher financing. Currently, Treball Solidari has 15 lending groups.

During the study trip, the Hungarian delegation had the opportunity to attend a lending group meeting. Two new members wanted to join the group and apply for financing in order to buy a machine.

“The study trip and the group meeting were very interesting and full of useful experiences for the Hungarian delegation. We had the chance to learn the true meaning of microfinance and how important a small amount of money can be from the point of view of restarting or survival” – said Tibor Szekfü, managing director of FEA and the leader of the Hungarian delegation.