26 May 2016
$4m for extending micro-financing
Budget 2016 has provided $4 million over the next four years to provide greater access to microfinance for whānau.
Māori Party Co-leader Marama Fox says, “This funding will provide small-scale, low-interest loans to reduce the number
of whānau accessing finance from loan sharks.
“The Māori Party has championed this initiative because trials held in the Auckland region have shown the long-term
benefits of providing micro-financing.”
Māori Party Co-leader and Māori Development Minister, Te Ururoa Flavell says the $1 million of funding per annum will
assist further micro-financial trails in high needs areas.
A study commissioned by Te Puni Kōkiri in 2014 shows that Māori earn less that the rest of New Zealand, have a lower
level of savings and lower home ownership rates.
Mr Flavell says, “As a result, whānau can end up resorting to fringe lenders who charge often exorbitant interest rates
and end up being trapped in a cycle of debt.
“This initiatives aims to improve financial independence for more whānau, including whānau-led small to medium
enterprises.”
This initiative and $4 million Community Financing announced by the Social Development Minister in Budget 2016 will
extend beyond the successful microfinancing trials undertaken in South and West Auckland, bringing the total investment
in micro-financing to $8-million.
ends