Economists and academics: The law creating microfinance banks contributes to the development process

Provinces - Sana

Many economic researchers, academic, human rights and trade union personalities have unanimously agreed on the importance of Law No. 8 of 2021, which allowed the establishment of microfinance banks, as it is considered a qualitative leap in the microfinance sector that began for the first time since 2001 in the field of securing the necessary financing for the segment of small producers, small business owners, and the limited and no Income.

Hassan Al-Hazouri, a professor at the Faculty of Economics at the University of Aleppo, said in a statement to SANA that microfinance banks will have a major role in the current stage and in the future by pushing the development process forward in a broader manner than the role of public and private banks, as the new law allowed them, along with financing, to provide insurance services. And re-insurance and transfer of funds within Syria, training and financial and economic advice.

On the desired role of microfinance banks, Professor Maan Diop at the Faculty of Economics at Tishreen University affirmed that the Syrian economy needs to attract foreign capital and companies to employ them in the field of microfinance and create new job opportunities, indicating that there are several countries that have followed the same method to achieve sustainable development after emerging from wars As devastating as Japan and Germany, it achieved great success turning small projects into giant investments.

His colleague, Dr. Rola Ismail, had a similar opinion, as she confirmed that the events of the aforementioned banks contribute to finding solutions to the aggravating economic problems such as high unemployment rates and recession and relieve pressure on the budget by securing job opportunities for graduates, considering that most of the problems facing small and micro enterprises lie in securing financing in In the absence of guarantees.

The local community also has an important role in encouraging the establishment of small and micro enterprises, according to the committee and credit official in the Local Development Office and the “My Project” program in Sweida, Walid Al-Hamoud, who believes that there is an urgent need to recycle development capital, noting that small enterprises are the least vulnerable to failure and risks due to the keenness of their owners. Not to waste their resources and invest them in an optimal manner.

In the same context, Eng. Muin Al-Saleh, head of the Agricultural Engineers Syndicate in Homs, indicated that the new law encourages home, medium and small crops, and contributes to achieving self-sufficiency among the people of the countryside and securing the needs of the local market, while Dr. Muhammad al-Masri, Dean of the Faculty of Agriculture at Al-Baath University said that the largest beneficiaries of the law They are those with limited income who are able to establish small projects that generate good income for them and their families, calling for focusing on small agricultural projects to reduce the prices of products.

With the aim of preparing banking cadres to work in the field of microfinance, Dr. Ammar Nasser Agha, Dean of the Faculty of Economics at the University of Damascus revealed that the college is preparing to establish a professional diploma course in microfinance targeting those wishing to enter the labor market to serve this important banking sector, as the course axes include an introduction to microfinance. Its concepts and principles, how to set interest rates, measure bank performance, risk management, product development, marketing and human resources.

Dr. Nasser Agha stresses the importance of training, building banking capabilities and providing advice to clients and others to secure additional income for them in order to enhance the economic and social dimension in order to achieve sustainable development.

Law No. 8 aims to achieve financial access for the largest possible segment of people with low or no income and who have the ability to engage in an economic activity and cannot access banking financial services by providing them with various financial products and services.