The Monetary and Credit Council sets the controls for accepting gifts and donations to microfinance banks

Damascus-SANA

The Monetary and Credit Council issued three decisions that included the controls for accepting gifts, wills and donations in microfinance banks, the controls for providing part of their capital in the form of in-kind advances, and the criteria for conformity and suitability for the appointment or election of members of the board of directors of these banks.

According to the decisions that SANA received a copy of, the Microfinance Bank is obligated to dispose of cash donations in lending operations and grant facilities and financing exclusively and not for any other purposes. International Accounting Standards.

With regard to the in-kind advances, the decisions indicate that the total value of these advances may not exceed 10% of the capital of the microfinance bank, and they should be in the form of real estate exclusively, and they may not be from movables of all kinds, moral rights or services, and the work of any person of any kind and is not excluded from This is only the movables associated with the submitted property and which are part of it.

The general standards for members of the bank’s board of directors, according to the decisions, require that they have experience in the field of executive and non-executive management in banking institutions that practice microfinance activity, and experience in the field of banking work in general, and financial, commercial, professional and administrative experience, and that the candidate for membership has a university degree as a minimum.

Based on the decisions, the minimum number of members of the board of directors in case the bank is a public joint stock company shall not be less than 7 members and in the event that it is a private joint stock company shall not be less than 5 members, while all microfinance banks must commit to reconciling the conditions of their management field with the standards of conformity and suitability approved by the Before the Monetary and Credit Council.

Law No. 8 of 2021, which allowed the establishment of microfinance banks, aims to secure the necessary funding for projects of small producers, small business owners, people with limited income and people without income by granting them operating loans in order to secure additional income for this segment, create job opportunities and achieve sustainable development.

Waseem Al-Adawi