Village Fund: Overview
A Village Fund is a fairly new concept in Cambodia and replaces the rice bank system but it has been implemented in other villages in the country with success.
Trailblazer Foundation believes this type of management gives the recipients pride and ownership of their project and allows them to build a future beyond subsistence farming without losing their culture.
A central Village Fund gives residents of a village an opportunity to save money as individuals and start a loan program which will provide capital development funds that build equity and sustain projects.
Repayment of private loans is made to the Village Fund and used to establish finances whereby money can be loaned to villagers at the discretion of the Bank Committee at a low interest rate.
How it Works
Trailblazer Foundation provides the initial grant for projects and receives no repayment. The management of funds is divided into two classifications.
Public Use Improvements
Culverts, roads, schools, public latrines, irrigation systems. These projects are a non-repayable donation, a one time donor contribution.
Privately Managed Businesses
Food stall, school supply stall, sewing shop, pump well repair shop, livestock, fish farms, or funds for their children's continued education. These projects are managed as a 50% donor contribution and a 50% repayment by the recipient with no interest.