The N.F.C. loan shop, which specializes in what are known as signature loans-no-collateral lending of amounts up to seven hundred and twenty dollars for no more than ten months-boasts that its interest rates are a mere ninety per cent of Oklahoma's legal maximum.
The European Central Bank also holds Greek debt, which it accepts as collateral when lending to euro area banks.
The threat of more downgrades has encouraged speculation that Greek government bonds might soon no longer qualify as collateral for lending operations from the European Central Bank.
British banks have long argued that central banks should accept more kinds of securities as collateral for lending, a step that would allow the banks to offload investments of questionable value.
Greece has slid further off course from its fiscal and economic targets: The official in charge of privatizing state enterprises resigned last week over the delays, and the European Central Bank said it would stop accepting Greek bonds as collateral for lending to that country's banks.
In addition, it will relieve the pressure on consumer demand and corporate profit margins.The fourth factor is that central banks are also willing to undertake quite extraordinary market-support measures, including the Fed's decision to accept equities as collateral against lending at its discount window.
In view of the uncertainty, the ECB has already decided to stop accepting Greek government bonds as collateral for lending to banks.
In a statement, the central bank said it would no longer accept Greek government bonds as collateral for lending money to commercial banks.
French President Nicolas Sarkozy said on Friday that the European Central Bank should accept a wider variety of collateral from lending institutions, a move which is likely to be announced as early as next month.
An ECB source said the bank's governing council was ready to resume accepting Greek government bonds as collateral for lending once necessary steps were taken for the extension and the bank determined there was a "great likelihood" that Greece would achieve a "positive conclusion" to its rescue program.
Yunus's original and utterly subversive plan was to lend lots of small amounts to the poor with no collateral; to lend the money on the basis of trust, not legal contracts.
