The representatives of Prague 1 approved a project called Corrency, the aim of which is to support individual trade establishments in the territory of Prague 1 and at the same time the purchasing power of the local inhabitants. It will distribute two million crowns among 2,000 inhabitants.
A thousand crowns for one
“The pilot phase of the project through public funds in Prague 1 in the amount of 2 crowns, which will distribute credits in the amount of one thousand crowns to two thousand inhabitants of our city district. Residents will then use their credits for purchases in establishments registered to use the project so that, for example, if their spending is 100 crowns, they will pay 50 crowns of their own and pay 50 with the help of the credit.“Described the councilor for business support in Prague 1 Karel Grabein Procházka.
According to him, the pilot phase of the project will take place in the period from May to the end of June and will verify the overall settings of individual parameters. “The goals of the project, including its pilot phase, are – individual establishments, clear management and support for the purchasing power of the inhabitants of Prague 1 and at the same time mapping which goods, services and where the inhabitants are looking for“Described Grabein Procházka, according to which the town hall is mainly interested in supporting establishments from the network of so-called civic amenities.
Epidemics, inflation and the Russian war have hurt
“After several stages of support for our sole traders and entrepreneurs over the past two years, we have been preparing the Corrency project with the implementation team since the autumn, as a further response to the effects of covid-19. But as it turned out in recent days, the situation is now even more serious than in the autumn and the Corrency project more necessary,“Pointed out the mayor of Prague 1 Petr Hejma. “The past two years have been very difficult for our entrepreneurs due to the coronavirus pandemic, and while everything seemed to be getting better, our economy was first affected by high inflation and then by the Russian war in Ukraine and its effects.He added.
“We appreciate the three main things for the project. Firstly, it is not a net subsidy, but a strengthening of the motivation of people to spend in the territory of Prague 1. Secondly, if someone deserves support, they are entrepreneurs in Prague 1, the coronavirus most affected region. And thirdly, the project will provide very good data on the establishments that citizens really want and appreciate,“Highlighted the Chamber of Commerce of the Czech Republic Tomáš Prouza.
Following the example of Kyjov
Corrency, a unique project to revive the local economy, was first tested in the spring of 2021 in Kyjov. At that time, 800,000 crowns were distributed among more than 1,500 Kyjov citizens in the form of credits. In the end, 2 million crowns went into the local economy, when the inhabitants added an average of 1.2 crowns of their own to one crown received.
The author of the Corrency system is Pepe Rafaj, an internet entrepreneur, financial sector innovator and co-author of the first electronic wallet in Europe. His collaborator is the co-founder of the financial company Fincentrum Petr Stuchlík.