1. 1 10 October 2006 The Social Microcredit Project of Compagnia di San Paolo Antonella Ricci Brussels, 10 October 2006

2. 2 10 October 2006 A virtuous three-sided partnership FOUNDATION (Compagnia di San Paolo) - financing the Guarantee Fund (GF) and the project - promoting, coordinating and monitoring NON-PROFIT ORGANIZATIONS (NGOs) Don Mario Operti Foundation in Turin, Santa Maria del Soccorso Foundation in Genoa, Risorsa Donna Foundation in Rome and San Giuseppe Moscati Foundation in Naples - assembling information and evaluating applications - mentoring successful applicants BANKS (Sanpaolo IMI and Sanpaolo Banco di Napoli) - checking credit worthiness - carrying out the final procedure (granting of the credit)

3. 3 10 October 2006 The intervention path BANK APPLICANT NGO 1. Application for the loan 3. Presentation of the selected application 4. Granting of the loan through current account used for all financial dealings Mentoring 2. Info gathering and evaluation

4. 4 10 October 2006 The loan Type:Fixed interest loan granted through current accounts Minimum sum: 2,000 to develop a business; 1,000 to promote employability Maximum sum: 20,000 to individuals; 35,000 to companies Length of loan:18-60 months Repayments:Fixed sum monthly instalments

5. 5 10 October 2006 Compagnia di San Paolo has granted 400,000 to each of the four NGOs (total amount 1,600,000) The grants have been used as a Guarantee Fund for the loans The guarantee fund can be used in the case of default or insolvency Its a rolling fund: repayments release an equivalent sum of the fund to be used for other loans From February 2005 the Banks apply a ratio 1 to 2 between the guarantee fund and the overall loans The Guarantee Fund

6. 6 10 October 2006 The crucial role of the NGOs NGOs role: they are closed to the need they are skilled for evaluating the loan applications they are skilled for mentoring the project MUTUAL TRUST

7. 7 10 October 2006 Data about the loans Data from October 2003 (beginning of the project) to March 31st, 2006 Applications received719 of which: Applications approved152 Applications rejected142 Applications withdrawn312 Applications still undecided113 Issued loans (among the approved)141 Amount of loans 1,693,600

8. 8 10 October 2006 Some examples of funded activities Business and trading (selling furniture, African craft, clothing) Services (crèche, dry-cleaners, telephone centre, Internet point) Restaurant, Bar Driving licence to accompany elderly or disabled people Art gallery Tattoo shop Tailoring workshop

9. 9 10 October 2006 The project has generated a wealth of ideas and novelties Training courses for successful applicants Attempt to involve successful applicants by asking them to contribute with a small amount towards the overall cost of the project Possibility to pay out the loans in instalments to monitor the correct use of the funds

10. 10 10 October 2006 The logo of the Project