It is estimated that the unregulated moneylending business in Malta runs into "many millions" of liri and is a plague that is impossible to stop because of the "phenomenal" amounts involved, according to the Foundation for Victims of Usury.

Although the government has recognised that the problem exists and has made usury a criminal offence, it is not enough and the next step is to see how to assist those who are caught in the trap, foundation committee member Peter Borg Costanzi said in an interview.

Dr Borg Costanzi appealed to the government to increase its assistance, particularly to social cases. Given the magnitude and gravity of the problem, the situation should not be solely in the hands of a voluntary organisation and the government should set up an official body.

He suggested looking at the Italian model and trying to emulate it. In Italy, particularly from Rome southwards, every village has an office catering for victims of moneylenders who are offered loans at subsidised rates.

If there were a legal set-up, a person could go to the official government branch, register as a victim of usury and get help, without having to resort to friends and favours.

"Victims of usury have a right to be assisted and not rely on voluntary work," Dr Borg Costanzi said.

It is estimated that the foundation deals with almost 200 cases of usury at any given time.

Despite the fact that problems are not solved at the click of a button, the foundation has experienced a degree of success in cases where the amounts owed are less than Lm5,000 and generally involve low-income earners, the unemployed and housewives with genuine social problems.

Less success is registered, however, among those who have a gambling background.

Over the last year, the foundation, a Church institution set up by Caritas, has taken a more intermediary and reconciliatory, rather than a pro-active, prosecuting role, he explained.

As a rule, the foundation does not resort to criminal or civil proceedings; nor does it act as a legal aid for the victim if the matter goes to court.

Nevertheless, there is no denying that making usury a criminal offence has had positive effects over the past year and several moneylenders have been brought to book.

The law has been extremely effective as a deterrent and has helped by stopping moneylenders from operating as openly and blatantly as they used to.

Moneylenders are also more prone to cooperate with the foundation when they are contacted because they know that usury is against the law.

When clients walk into the Caritas office, they are usually desperate because of an impending deadline to pay up, Dr Borg Costanzi explained.

"The foundation is normally the last resort and the situation has usually already gone beyond handling point when they turn to it. They keep on borrowing, hoping for a miracle. But the situation only gets worse and worse.

"We try to calm the clients down and get a broader picture of their financial status to be able to tackle their total liabilities, manage and contain their problems. Creditors are approached to determine the minimum sum they would be happy with and an interim repayment programme is started."

Clients are assessed to see whether their situation has stabilised, and if it is a deserving social case, the committee recommends that the victim is given a bank loan.

The stories are horrific: the foundation has a client, for example, who borrowed Lm300 about 10 years ago and has been paying Lm100 a month for the last decade.

"It is impossible to convince her to get out of it. She earns the money off the streets, and when she does not get it, the moneylenders put pressure on her to get it. Many steps have been taken to convince her to simply stop paying but she is too scared."

Moneylenders are notorious for working on fear - on the threat of violence, rather than the violent action itself.

But they do not only take advantage of social cases. Moneylenders also make bags of cash from people's business problems.

However, there are also some positive experiences and Dr Borg Costanzi pointed out cases where moneylenders completely waived owed sums.

"It is not the first time moneylenders have accepted what the foundation considers to be the legal amount due, sometimes completely forfeiting interest.

"You cannot ignore the fact that the foundation is a Church institution, people still have a conscience and miracles do happen."

One example is of a man who has a long history as a moneylender and whose name has been cropping up in court for the last 20 years as a plaintiff collecting money.

"When we spoke to him, he practically tore his papers up and agreed to take what we recommended," Dr Borg Costanzi said.

He appealed to the public not to borrow money even if they had a major problem and to discuss it with someone they trusted.

"If you have borrowed and owe money, speak to the foundation immediately before it is too late and before it gets so much harder to solve."

The foundation operates in total confidentiality and would not disclose any information unless the client authorises it.

The Caritas office in Floriana is open every Monday afternoon, tel. 2123 3933.