464 



PROVISION OF BORROWING FACILITIES. 



The contracts with the usurers not unfrequently render it difficult 

 for the fellah, who is already indebted, to take advantage of the 

 terms now offered by the Bank. A common form of contract is that 

 of a loan of E.100 for ten years. The yearly instalment for 

 repayment of capital and interest is E.20. Thus, under the 

 procedure I have explained above, in all E. 200 is paid in ten years. 

 Supposing now that, in the course of two years, a fellah has paid 

 E.40, of which one-half would be interest and one-half repayment of 

 capital. It might be supposed that, on payment of E. 80, he 

 would be free from the debt. But such is not at all the case. Under 

 the terms of the original contract, he is often debarred from freeing 

 himself unless he pays the difference between E.200 the total 

 amount which would have been paid in ten years and E. 40, being 

 the sum he has already paid. In other words, in order to liberate 

 himself, he has to pay E. 160, f**J discount at the rate of 7 per 

 cent, on E. 160. In cases of this sort the Bank can be of but little 

 assistance. 



