More Problems for Government Lending Program

More Problems for Government Lending Program

Friday, February 04, 2011 at 15:02

 

 

There’s more troubled water for a government lending program.

 

The “loan loss reserve initiative” was launched a few years ago.

 

It’s designed to give financial groups the security to hand out loans to businesses on reserve.

 

However, many Aboriginal lending agencies are upset the government only picked seven groups to hand out the money.

 

Now one of those groups, Assiniboine Credit Union, is apparently pulling out.

 

Alan Park, the C.E.O. of a tribal group in Winnipeg, is unhappy with the situation.

 

He says the government should have known better than to try this type of arrangement.

 

He argues the loan loss reserve initiative is an old idea that already failed a few decades back.

 

He also feels many aboriginal communities are put off by the fact their own agencies aren’t allowed to run the program.

 

At least four Aboriginal organizations are challenging the program in court.