Originally published: July, 2008
Source: Syria Today
Syria’s first MFI is expected to start operations soon. It will provide financial services to a diverse range of small businesses, professionals and individuals. An initiative of the international development agency Aga Khan Development Network (AKDN), the First Microfinance Institution (FMFI) will provide small loans, deposit facilities and a range of other financial services to clients in six Syrian governorates.
“Our prime objective is poverty alleviation, but our loans don’t just target the poor. Around 90% of the Syrian population doesn’t have proper access to financial services. There are various reasons for this including low average income and tax avoidance,” said Bassel al-Hariri al-Rifai, head of microfinance at FMFI.
FMFI received its license to operate from the Central Bank of Syria (CBS) on March 27, 2008, following the passing of Law No. 15 in November 2007, which allows for the establishment of MFIs in Syria. Until the passing of the new law, the scope of operation for agencies running microfinance programs was limited as the legal environment surrounding these programs remained unclear. Obtaining a legal status will allow MFIs to provide clients with better services and increase the avenues from which they source their working capital.