From: Blunderov (squooker@mweb.co.za)
Date: Fri Mar 26 2004 - 04:20:49 MST
[Blunderov]
Here in SA we appear to be in the grip of a banking cartel. You cannot
withdraw money or perform any transaction at all without being charged
for it. Adding injury to insult, the charge is often a percentage of the
sum. And in, mark you, the age of instant communication, they will hold
on to your cheques for seven working days before they reflect the money
as belonging in your account. The statement of interest received at the
end of the month is a hollow joke compared to the accumulated 'fees'.
Best Regards
<q>
Bank Operates Without Interest
26.02.2004
By SIMON COLLINS
Imagine paying off a $200,000 mortgage and ending up with not only a
mortgage-free house, but also $200,000 in cash.
In our interest-driven banking system, it would be inconceivable.
But for 26,000 members of Sweden's unique JAK Bank, the dream of getting
rid of interest has become a reality.
Bank co-founder Eva Stenius is in Otara this week to speak at the
Auckland Eco Show, a five-day "tent city" of talks, demonstrations and
displays on sustainable living, housing, energy and agriculture.
Mrs Stenius said borrowers in the member-owned JAK Bank earn the right
to interest-free loans after saving with the bank - also without earning
interest - for several years.
Then, if they take out a $200,000 mortgage, they have to keep up
repayments until they pay back the $200,000 loan plus up to a further
$200,000 - a form of forced saving which means that each borrower in
turn finances the next borrower.
The big difference from interest-based banking is that, instead of that
extra $200,000 disappearing in interest payments to the bank, the
borrowers ultimately get back the money they were forced to save.
"It's among friends. We are circulating the money amongst ourselves
independent of others who want to exploit us," Mrs Stenius said. "It is
based on humanitarian values rather than profit."
The system depends on people being willing to save before and after
taking out a loan without receiving interest.
Mrs Stenius says JAK members are willing to do that, to qualify for an
interest-free mortgage themselves, and to help their families and
communities.
"You have complete control over where your money goes," she said.
"Maybe you would like to give your savings points to your children for
their education, or to help fund starting a business, or you might
donate it for JAK to invest in community development or women's
enterprises or sustainable development.
"A typical JAK member is one with ethical values. Quite a lot are my age
[60s] and many are well educated. And there is a big group with less
money who are into alternative living in the countryside.
"There are also a lot of immigrants from the Muslim community because of
the Muslim law of no interest."
Mrs Stenius and her then-husband, Per, helped establish the Swedish JAK
Bank in 1970, inspired by a similar Danish bank which later merged with
a larger commercial bank.
The name comes from the Swedish words Jord, Arbete, Kapital - land,
labour and capital, "the three cornerstones to economic development".
The Swedish bank learned from the mistakes of its Danish predecessor,
which ran out of cash because too many members wanted big loans as soon
as possible.
In the Swedish system, a person's loan entitlement is calculated on a
strict formula based on "savings points".
"We are the safest bank in Sweden," Mrs Stenius said. "You can't just
have a big loan - you also have to contribute."
Administration costs are covered by a $40 annual membership fee and a
one-off loan fee based on a formula which works out at the equivalent of
about a 2 per cent annual interest rate.
The bank has 30 paid staff in two offices, and members do their banking
over the telephone.
But it also has 460 trained volunteers who organise lectures and
exhibitions on sustainable development around the country.
For more information about the JAK: www.jak.se
</q>
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