375-year-old french bank forgives the debts of Paris' poorest
France has been criticized lately for heavy national borrowing with a sovereign debt downgrade, but thousands of Paris’ poorest were just given the gift of a clean financial slate after the country’s oldest bank decided to forgive their debts.
3,500 people benefitted from the gesture, and they each had debts of 150 euros or less. If you’re wondering why that number is so low, it’s because the 3,500 were clients of the 'bank of the poor' (Mont-de-piété), which has for centuries allowed down-on-their-luck parisians to get loans against their valuables.
“The goal was to combat usury,” explains Thierry Halay, who authored a history of the Mont-de-piété. “Interest rates at the time could go up to 130 percent,” which quickly turned small loans into unmanageable debt.
Full story at GOOD.
