NO. 4(1921) FISHERIES OF DENMARI^ 3»7 



Stdtc loans. — Financial assistance is carried on by two nietliods ; 

 the first involves direct loans to the men themselves, the second is 

 indirect, the money being distributed through the agency of 

 co-operative associations. Under the former system Kr. 300,000 

 (Rs 2,25,000) is at present being utilized for loans direct to boat- 

 owners; under the second, Kr. 200,000 (Rs. 1,50,000) is set aside 

 to provide advances /;/ lin//p sums to various co-operative societies, 

 which are responsible for allocation in a proper manner. Direct 

 loans are made upon the sole security of the vessel built, bought, 

 or repaired; those to societies are upon the unlimited liability of 

 the members — the whole of their property is pledged when they 

 obtain admission to these societies. No society may be registered 

 with a membership of less than thirty. The sum advanced may not 

 exceed two-thirds of the total value or cost of the boat to be bought 

 or built ; in the case of second-hand boats, the advance may not 

 exceed one-half the value. The method of repayment varies 

 according to whether the loan is direct or indirect. When it is 

 direct full repayment is nominally due within II years — in practice 

 it is seldom less than 11^. During the first year no repayment of 

 capital is asked for, merely the interest thereon. This is to allow 

 for delays incidental to the commencement of any enterprise and 

 to give time to the fisherman to rehabilitate his finances, strained 

 usually in providing nets and gear and his share of the cost of the 

 boat. Besides this, several months' more delay may be obtained for 

 the payment of the initial instalment, by applying for the loan 

 soon after one of the half-yearly dates (ist January and 1st July) 

 on which instalments have to be paid in. The amount of annual 

 repayment is fixed at one-tenth of the sum advanced, payable in 

 half-yearly instalments. 



In the case of loans obtained through a co-operative society 

 no repayment of capital is required till the expiry of five years 

 from the date the loan is made. During this period interest alone 

 is paid. During the sixth year one-tenth of the amount must be 

 repaid and the same sum annually thereafter till the debt is cleared 

 off. This means therefore a 15-year period for repayment. The 

 rate of interest is to some extent variable, being governed by the 

 fluctuations of the bank rate. That current in 1920 was 4 per cent 

 on loans made direct to fishermen, while that chargeable by 

 societies is fixed at 5 per cent as a maximum. Every boat upon 

 which a loan is made, must be insured for a sum sufficient to cover 

 this advance, in an Insurance Society approved by Government. 



