Historical traits of credit cooperation in Panemunėlis (1924–1949)

Vladas Terleckas

The original sources enabled to reveal that the first enterprise to lend assistance to people in Panemunėlis was the grain store (“magazine”, established in 1850s). It used to lend grain to peasants who had suffered from crop failure or natural disasters. In 1913 a department of State Savings Fund at the Panemunėlis Post started its operation. 

On 5 May 1924, the Panemunėlis Small Credit Bank (later renamed into the Small Credit Society) started its operation; it was attributable to the category of the cooperative credit enterprises. The key operation of the Society was to provide short-term loans to its members–farmers. It accumulated its resources for crediting by accepting deposits and borrowing from banks. The Society successfully expanded its operations: in 1926–1939 its own capital grew 21.6 times, the deposits went up 52.2 times and credits given increased 18.8 times.

After Lithuania was occupied in 1940, the Panemunėlis Small Credit Society was sovietised, lost its economic and legal self-sufficiency and was turned into an enterprise introducing Soviet power in rural area.

At the end of 1949, due to general collectivisation, the Society was dissolved.