Italian priest Fr Vincenzo Federico has gone into the finance business, guaranteeing loans for people in difficulty as a result of the global economic crisis. Ever since he guaranteed a loan of €10,000, or $13,500, to a family of four early this year, his mornings are filled with back to back appointments with churchgoers seeking similar help, the International Herald Tribune reports.
"These days I feel like a banker," Father Federico, 40, said by telephone from his parish in the village of Padula in southern Italy. "In 15 years of priesthood, I never thought that this is what I would wind up doing."
As Italy, the most indebted country in Europe, faces its worst recession since 1975, the Catholic Church is stepping in to help cash strapped Italians, who receive the lowest levels of unemployment assistance among the 30 members of the Organization for Economic Cooperation and Development.
The smallest of Italy's 325 dioceses have earmarked a minimum of €15,000 to support bank loans for parishioners. The archdiocese of Milan, the largest Italian city after Rome, has created a €3.2 million fund, to which people may contribute over the internet.
Church officials are meeting in Rome this week at the Italian Bishops Conference to commit more cash, according to Andrea La Regina, head of social projects at Caritas.
"We are putting more money in the pot to meet the demand of families that, until a few months ago, wouldn't have dreamed to ask for help," Mr La Regina said. "The state is not doing what it should to cushion the effects of unemployment."
Caritas serves as the intermediary between parishes and Banca Etica, or Bank with Ethics, a lender started 10 years ago in Padua, west of Venice, by a group of nonprofit organisations.
To obtain credit, Catholics must first make their case to their parish priest, who presents the appeal to a three member council of the local branch of Caritas. If the charity decides with Banca Etica that there are grounds for a loan, the church acts as a guarantor.
"We examine case by case to ensure that people aren't too indebted," said Claudio Gasponi, who screens loan requests at the bank. About a third of applicants receive funds, he said.
The current interest rate is 3 percent a year. That compares with rates of 8.9 percent to 9.3 percent for personal loans from Intesa Sanpaolo, one of the biggest Italian banks.
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(Source: CTHN)