Credit Fund in Operation

The Janasaviya Trust Fund(JTF)in Sri Lanka works to alleviate poverty in a variety of ways ranging from the provision of grants to carry out community infrastructure projects(roads,dams)using local labour to the implementation of programmes designed to improve nutrition in pre school children.

The JTF was established by the Government of Sri Lanka with World Bank assistance and is governed by a Board of Trustees.The savings and credit aspect of the JTF is carried out by the JTF Credit Fund.The aim of the Credit Fund is to facilitate the expansion of income and employment opportunities through the provision of credit for self employment ventures, with the final goal of poverty alleviation.

The Credit Fund does not involve itself in the actual operation of a credit and savings programme. Instead it acts as an apex organisation lending funds to selected Partner Organisations(POs)who in turn mobilise the target groups, activate savings and extend credit in support of micro enterprise development.

POs include NGOs, village based grassroots organisations and commercial and non commercial banks.

The Credit Fund provides POs with a comprehensive training which includes promoting the POs’ institution building capacity if an when required, in order to help the POs sustain their capacity to assist the poor on a long term basis.

The Credit Fund does not implement projects directly but monitors the projects and other activities such as training and institution building that it funds.

At the inception of any programme, the mobilisation of savings among the beneficiaries is considered a high priority. Both POs and beneficiaries have key roles to play in the generation and management of savings deposits.

The key feature in this credit scheme is that emphasis is placed on social mobilisation and training of beneficiaries before loans are disbursed. The mobilisation takes place through the formation of groups whose members select each other, participate in the loan approval and recovery process, become mutually accountable to one another and build solidarity to confront economic and other issues as a team.