EOSS Supports the Launch of the First Community Bank in Rio de Janeiro

Rio de Janeiro, Brazil, September 30, 2011 --(PR.com)-- On Thursday 15, 2011, the first community bank of Rio de Janeiro was opened in the City of God (Cidade da Deus), an economically underdeveloped community in the West Zone of the city.

EOSS Director Silvia Regina de Almeida consulted the Agency of Local Development in their effort to launch and start running the bank successfully over the last 9 months. EOSS Project Manager Benjamin Rath will support the agency going forward in their personnel and organizational development which will be crucial in their new endeavors. In addition EOSS will offer formation programs for young entrepreneurs to support new businesses in the community.

In order to develop the local economy, the Community Bank of the City of God will operate with their own money, the social currency CDD (for Cidade de Deus). Each CDD is worth 1 Brazilian Real.

The goal of the new solidarity currency is sustainable development in the community by encouraging domestic consumption.

The starting point for this is given by the bank who will provide micro loans with low interest rates for merchants and families. The bank will focus especially on those who are not served properly by commercial banks and keep their administrative effort low with simple financial background checks and information of neighbors about the credit-worthiness of people who apply for a loan.

The success of the solidarity currency after this facilitation of the bank will be in the hand of the residents and will require their effort for and loyalty with their own community.

Currently over 70% of the money that is earned in the City of God is being spent outside the community.

To break with this cash outflow, the merchants will need to accept the payment with the new currency and attract the local consumers with special discounts when paying with CDD.

The consumers themselves will have to be more loyal to the businesses of their own community and purchase goods and services within the community, thus generating a local economic circuit.

So far the Agency of Local Development has registered about one hundred merchants, and many are already doing promotions and discounting, to attract consumers who are buying with CDD. The interest and enthusiasm of the people in CDD promises a good start in getting the CDD flowing well.

The mayor of Rio, Eduardo Paes, and the national secretary for Solidarity Economy, Paul Singer and other officials and politicians, participated in the event to launch the community bank .

In his speech to the population of the City of God, Paes emphasized the importance of the program as part of the economical agenda of the state government. He is confident that it will be an effective measure in reducing poverty.

Singer added that the solidarity economy is spreading worldwide and that the community bank of the City of God is the 63rd of its kind that was established in Brazil. For Singer community banks have proven to be a successful way to break the economical isolation that exists in poor communities.

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