Grameen Foundation Scotland collapses

Sayeed Muhammad of DOT
Liquidators have been called into a failed Scottish charity which provided micro-credit business loans in deprived communities, reports The Third Force News.Inspired by Prof Muhammad Yunus’ microcredit, Grameen Foundation Scotland has collapsed in the wake of insurmountable debts. The Glasgow Caledonian University-based charity’s cash flow was hit after some of its customers fell into arrears.
The initiative was launched in 2012, following the idea of Bangladeshi Nobel Peace Prize winner Prof Muhammad Yunus.
Prof Yunus was one of six directors of the foundation which traded as Grameen in the UK.
Provisional liquidator Brian Milne, from business advisers French Duncan LLP, said the business had now closed with the loss of all four jobs.
Grameen offered small loans to people unable to access mainstream financial services.
Its goal was “to improve the economic situation of the most financially disadvantaged in the UK, initially in the west of Scotland, on a sustainable basis”.
It provided loans to around 1,000 people.
Milne said: “The Grameen Scotland Foundation is unable to continue trading as its debts have become insurmountable.
“Creditors are due around £300,000 and the main reason for the financial collapse is that a number of the foundation’s customers have fallen into arrears, which has had a detrimental effect on the company’s cash flow.
“The directors petitioned for liquidation as the company is insolvent.”
Grameen Foundation Scotland collapses
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