The Lebanese Cooperative for Development: Credits for Christians only!

The Lebanese Cooperative Association for Development (LCAD) was created in 1992 through an initiative by Father Yoakim Mubarak. It was set up by 400 Maronite personalities with each donating part of its capital which totaled USD 800 million.  At its onset, LCAD aimed at providing small credits to help Maronites overcome problems resulting from the war, halting the demographic erosion of Christian communities and encouraging their members to steadfast on their lands and curtail domestic migration to the capital. Since its inception, the financial services of the cooperative covers all Lebanese regions while targeting existing or emerging agricultural, handcrafts and food processing projects. LCAD charges a low interest rate of 6.5%, compared to average 13% charged by other credit institutions. While the association’s declared aim is to provide credits to Maronites only, it has shown some flexibility and has reached other Christian communities as well, according to Serge Uayss who has been managing the association for the past 7 years. The association is affiliated to the Ministry of Agriculture unlike all others microfinance organizations which are affiliated to the Ministry of Social Affairs. In 2014, the association gave a total of 430 credits amounting to USD 2 million. The total number and value of credits increased during 2014 by 29% and 30% respectively. The association’s accrued profits by the end of 2014 amounted to USD 25,000 only. According to Uayss, LCAD received in 2011 a USAID grant of USD 12 million. The association also collaborates with three commercial banks; notably Byblos, Libano-Francaise and BLT and maintains strong partnership with the General Administration of Catholic Schools and the Maronite Research Centre. (L’Orient Le Jour, 21 April 2015)