Damascus-Sana
The goals laid down by Law No. 8 of 2021 for microfinance banks constitute a radical transformation in the sector of small and micro enterprises, in terms of sponsoring them since the birth of their idea, its crystallization, and training those wishing to establish projects until their establishment and support with the necessary financing with encouraging benefits, whether there are guarantees or not.
The new law would be an attractive factor for the target segment represented by the limited and the income-free in order to start their own project and improve their financial conditions by granting the microfinance banks a wide range of services, powers, exceptions and exemptions, all with the aim of achieving a broader goal, which is sustainable development.
Law No. 8, which represents an unprecedented banking vision, will contribute to moving the investment market and attracting Syrian and foreign capital from abroad, according to what University Professor Mahmoud Abdel Salam, a researcher in the field of business administration, confirms in a statement to SANA, where he also saw that the new law’s interest in small and micro enterprises will secure families The poor have adequate income and make them productive and self-sufficient families.
Dr. Abd al-Salam states that Law No. 8 shares create a new and developed legal environment capable of protecting the money and rights of investors, whether they are Syrians or foreigners, stressing that the banks that will be established are legally exempt from profit tax, income and fees for five consecutive years regardless of the volume of trading of their shares and there are easy conditions for establishing Investment portfolios and allowing expatriates to participate in establishing these banks as limited joint stock companies.
For the first time, people who have ideas about small projects but do not have the financial resources can start their own project under the new law, according to the teacher at the Faculty of Economics at the University of Tartous, Dr. Walaa Zreqa, a specialist in the feasibility of project management, who expected that nearly 70 percent of the segments of society would benefit from Small finance loans, especially since public bank loans need many guarantees and guarantees.
Zerika stressed the need to prepare a database for the sectors and target groups according to the law to ensure that borrowers do not go to obtain financing from more than one bank, which makes them vulnerable to the risks of inability to pay and also with the aim of knowing the most needy financing applicants and pointing out the importance of supervision and control over the work of financing banks Smaller loans to prevent double withdrawals.
For his part, a teacher at the Faculty of Economics in Daraa Governorate, Ali Al-Salamah, stressed that financing and good management are the basis for the success of any project, indicating that the law on microfinance banks contributes to combating unemployment by securing new job opportunities, raising the level of income and domestic product, achieving abundance in local products and securing an alternative to imports.
The Dean of the Faculty of Economics at the University of Aleppo, Dr. Ghassan Saket, believes that the law would help a wide range of people affected by the terrorist and economic war on Syria, which led to the inconsistency of per capita income with the requirements of living, warning of the danger of stopping many trades, professions and business owners as a result of their lack of financing on easy terms.
Dr. Saeed Al-Amoum, Deputy Dean of the Faculty of Economics at the same university, mentioned the experience of Germany, which is the most powerful economy in the world, which relied in its beginnings on small family enterprises and gradually turned into huge projects, indicating that the new banks will help in restarting the workshops that were suspended due to the war as well as the rural agricultural projects. Procedures should be simplified to ensure that owners have access to financing and to mitigate red tape and complications.
It is noteworthy that the Monetary and Credit Board approved yesterday the executive instructions of Law No. 8 concerning the establishment of microfinance banks, which it is hoped will contribute to securing financing for small and micro-productive projects, providing new job opportunities, improving the material reality of families and increasing production, in order to enhance economic growth rates and domestic product. .