The local Money Market

Is it a valuable service on offer to the locals or just
plain highway robbery?

The local money markets are always available to lend money to anyone willing to
pay the exuberant interest rates that are charged. There are money lenders
everywhere and never a shortage of folks to take advantage of this
“community” service. Those that are working and broke a few days
before payday can access some spare cash to carry him or her through until next
payday.

The interest rates charged is certainly something to behold !

The going rate on a K10 loan for one week is K4. Some money markets charge as
much as K5 interest on a K10 weekly loan. Watch out if you are late in repaying
the money lender – each week incurs an additional K4 interest. The going
interest rate on a K50 loan for one week is K20. For a K100 loan I believe it
to be K40.

How do I know all of this?  Apart from the fact that I have been known to
roam the local settlements and markets – where the money markets tend to be.
The other night Eli approached me with an idea her and her sister had come up
with. Eli and her sister Lena had discussed the idea of going into the Money
Market business and wanted to know if I was willing to “sponsor” the
venture. I was kind of caught of guard and when Eli first asked me I said that
I needed to think about it.

Well the thinking didn't take long at all. The word that popped into my mind to
describe the local money markets is “usury”. The dictionary defines usury
as : “The practice of lending money and charging the borrower interest,
especially at an exorbitant or illegally high rate”.

And guess what – the bible (yes – the bible) has a multitude of references
to this word : usury. Got a great ring to it this word hasn't it
!!  I have found the following passage in the bible in relation to usury
: “Thou shalt not lend upon usury
to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury“

So….

I wander whether any of the folk that steal from their brothers and
sisters through the means of one of these Money Markets go to church on
Sundays?  And if they go whether they are aware of this passage. Perhaps
they do go to church (most PNGers do) and call themselves christians. Hypocrisy
perhaps ?  Having been raised a catholic it was always a word that stuck
in my mind : hypocrisy !!

So what answer did I give Eli ?

No, no and triple no !!   I suggested that she and her sister, when
they get a spare moment, lookup the bible and read up on references to the word “usury”.

I did come up with a great business idea…   lending money to the money lenders!  I am told that money markets are always running out of cash – it's like you need to be quick to get that loan. Lend it to them at say K1 for K10 and a minimum of K100 – that's a K10 profit every K100 in just one week. There are certainly times I wish I was unscrupulous – I would certainly be richer !!