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Office:
Käenkuja 3–5, 5th floor
FIN-00500 Helsinki
Tel. +358-9-825 2300
Board chairman Kaj Järvisalo
phone +358-9-529 923
mobile +358-50-552 1049
office +358-9-859 2057
email kaj.jarvisalo@kolumbus.fi
Last update : November 2000 - contact person & Board chairman update: January 2002
Osuuskunta Eko-Osuusraha (Former Eko-Osuuspankki)
Background
In the beginning of 1998, The Finnish ecological banking initiative Eko-Osuuspankki sought to change its legal status. A bank now became a financial co-operative which no longer enjoys the government savings collateral but operates on a risk capital basis. The purpose and aims of the co-operative Eko-Osuusraha largely remain the same than before, but the organisation could be made lighter and more effective. Giving up the banking licence also made it possible for the co-operative to start functioning towards the establishment of new financial products in Finland. The actual work begun in February 1998.
First financial period
During the first financial period from January 1st until June 30th 1998, the first products were launched. These include ecological loans with guarantee circles as collateral, as well as other loans for ecological purposes and membership based loan products. At the end of the financial period there were 796 member in the co-operative, five of which received a loan from Eko-Osuusraha during the first five months. The products were created and developed in theory during the banking period, and now they could be put into practice. The average annual interest rate on the loans was 5.3 per cent.
New products
In the present financial period a new concept called "Active Saving towards Loan Management " was created for the members of the co-operative. The idea is that by regular monthly saving in the form of additional shares, the member not only is able to show long-term ability to meet the mutual agreement but also automatically receives a loan when it is needed. Repayment is done by continued monthly payments on the same sum than in the saving period. The member can choose to draw back the additional shares when he/she takes the loan, or to leave them untouched, as collateral for the loan, although collateral is not necessary for these loans. Providing collateral will, however, affect the interest rate on the loan. This product improves the member's ability to weigh in beforehand his/her financial resources to repay the loan, and thus also judge if it is realistic or not.
Guarantee circles as collateral are gathered either by the lender or by the co-operative, and the members can inform which types of loans they would like to back up with a limited guarantee. A special product for small enterprises to cover dealys in their expected income through invoicing was also created.
