Co-op Bank’s backing for £31m UN scheme

THE Co-operative Bank will today unveil $50 million (£31m) of funding for co-ops in developing countries to offer low-cost loans to their clients.

The scheme, which is being co-ordinated by the Global Development Co-operative (GDC), is being launched as part of the United Nations’ “international year of co-operatives” in 2012.

Money from the programme will be lent primarily to existing co-op banks – which will in turn pass the money on to infrastructure projects – and agricultural users, such as farmers’ co-ops.

Paul Flowers, chairman of the Co-operative Bank, said: “Despite the tough economic times, our six million UK members want us to maintain support for development both home and abroad. It’s important we use the influence of the co-operative movement to support communities across the developing world. ”

The Co-operative’s investment is part of the organisation’s three-year “ethical plan”.

Other co-ops pumping money into the scheme include the Mid-Counties Co-operative in the UK, the All China Federation of Supply and Marketing Co-operatives, Credit Cooperatif of France and IFFCO of India.

Globally, the 300 largest co-ops turn over more than $1.6 trillion and employ about 100 million staff. Dame Pauline Green, president of the International Co-operative Alliance, said: “This initiative is a clear illustration of one of the founding principles of the movement – self help among co-operatives.”