Spain: Investment banks finance micro-loans

Investment banks such as Deutsche Bank, Crédit Suisse, Citigroup, etc, have discovered micro-loans for those most in need to finance their own small enterprises. In addition to a tool against poverty, micro-loans have become a profitable financial product in recent years. At present, micro-loans for the poor are increasing annually by 40% and the potential of this market has been estimated around 250,000 million Euros. Big investment banks are becoming a part of a sequential chain in which participating organisations are smaller as they get closer to the recipients of the micro-loans whilst interest rates gradually increase. Although the interest rates applied to the poorest can exceed 50%, bankers insist on the fact that these loans are more competitive than those applied by many particular individuals (?usurers?) in these countries. Big investment banks are then planning to offer economic and technical support to microorganisations which are in need of capital and may be encountering difficulties to obtain funds. At the same time, those particular investors who wish to take part in these initiatives will deposit their savings in these investment banks.