Damascus-Sana
In an analytical reading of Law No. 8 on the creation of microfinance banks, the doctor at the Faculty of Economics at the University of Tartous Walaa Zreikah affirmed that the law contained many essential and important points that constitute the pillars and keys essential for the advancement of micro-enterprises, the most important of which are the provision of financial services with or without guarantee, savings, insurance, training, capacity building and provision Advice and guidance in administrative, marketing and technical services.
It is clear from the analysis of Law 8, according to Dr. Zreika to the SANA delegate, the necessity of carefully selecting borrowers based on scientific criteria based on low or no income classifications in addition to the ability to practice economic activity to support them with financial and non-financial services, while the latter will accompany them, starting from the stage of proposing project ideas. Which will be funded through a feasibility study and then provide advice, advice and follow-up during and after implementation.
Zureka points out that Law 8 allowed all operating banks and licensed associations to establish micro-finance banks or participate in their capital as a strategic partner, which means “expanding the base of microfinance donors to the largest segment of suppliers and exhibitors,” stressing that the association’s entry into the banking sector is a “major and important turning point.” They have economic and social development goals and are not profitable, as associations can play a greater role in expanding their development activities with precision and professionalism.
The creativity of Law 8, according to Ziraka, is evidenced by allowing the opening of offices and branches of microfinance banks based on the needs of different geographic regions. Therefore, these banks have to think about providing innovative financing and credit products in terms of their suitability with the different projects of income-earners in all agricultural, industrial, commercial and service sectors.
It is noteworthy that a number of microfinance institutions have confirmed that they are seeking, in cooperation and coordination with the Central Bank of Syria, to reconcile their situation and convert to smaller finance banks in accordance with the provisions of Law No. 8 of the current year.
Wasim Al-Adawi