Damascus-SANA
Ebdaa Bank for Microfinance and the Arab Insurance Company “Syria” today signed a cooperation agreement aimed at providing insurance services to borrowers from owners of small and micro enterprises.
The agreement, which was signed at the bank’s headquarters in Damascus, stipulates that the Ebdaa Microfinance Bank shall allocate outlets for the issuance of insurance policies that the company provides to the borrowers of the bank, based on the Microfinance Banks Law and the decision of the Insurance Supervisory Board that includes the controls of these banks’ work in the field of insurance.
The mentioned company, according to the agreement, shall train the employees chosen by the bank to manage the issuance outlets under its supervision, whether with regard to life insurance policies for borrowers or the assets of their projects or against risks and other insurance products.
In a statement to SANA reporter, Adib Sharaf, CEO of the bank, confirmed that the agreement represents one of the steps to implement the provisions of Law 8 of 2021 regulating the work of microfinance banks, which allowed them to provide insurance and reinsurance services to Syrian insurance companies in accordance with the controls set by the Insurance Supervisory Authority.
Sharaf pointed out that the establishment of insurance niches in the bank’s branches and offices contributes to spreading the culture of insurance among borrowers and customers with the bank and providing them with financing insurance solutions that contribute to covering their financial needs, indicating that borrowers from the bank can benefit from insurance services, whether related to the property of their project or life insurance, pointing out The bank focuses largely on providing insurance and financing services to the agricultural sector.
The Director General of the Arab Insurance Company, Nasser Al-Halawani, explained that there was a tendency to open insurance niches and outlets at the branches and offices of the Ebdaa Bank, in accordance with the regulations of the Insurance Supervisory Authority, indicating that 6 niches will be opened under the agreement and work is underway to increase them to cover all governorates.
Al-Halawani pointed out that the agreement contributes in the next stage by providing other insurance services, including car and health insurance.
It is noteworthy that Law 8 of 2021 allowed microfinance banks, in addition to insurance services, to accept deposits in the Syrian currency, provide financing and financial products with or without guarantee, open current and saving accounts, invest in government securities and securities issued by the Central Bank of Syria, and advise and guide in the administrative, marketing and technical fields, and training services. Conducting research and transferring funds inside Syrian territory.
Waseem Al-Adawi
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