Our Partners
SYRIA
Although Syria’s economic growth has been strong in the past three years, with average real GDP growth at 5%, 12% of the population continues to live in poverty and the social inequality is increasing with a poverty highly concentrated in the rural Northeastern regions and increasing disparity between the population.
Human Development Index gives the country a rank of 107th out of 182 countries in 2009,
The microfinance sector in Syria is small and nascent, with only a few players and limited coverage. As a result, the microfinance market potential is estimated around 1.8 million and the microfinance penetration is estimated at just 6%.
The Syrian regulatory framework for microfinance is among the most favorable in the region due to the passage of the General Microfinance Decree (Syrian Legislative Decree no. 15) in 2007, the first of its kind in the region. The decree allows the central bank to license Social Financial Banking Institutions (SFBIs) with the ability to provide lending and deposit services, as well as insurance. Since the law was passed, one SFBI, First Microfinance Institution – Syria (FMFI-S), received a license. As a result, Syria boasts tremendous potential to expand and upgrade its microfinance market, increasing outreach and service delivery nationwide.
First Microfinance Institution – Syria (FMFI-S): FMFI‐S is the first microfinance institution in Syria to receive the Social‐Banking Financial Institution (SBFI) license awarded by the Central Bank under the new regulatory framework announced in 2007. It was established by The Aga Khan Development Network (AKDN), a group of development agencies with mandates ranging from health and education to microfinance, rural development, disaster reduction, and the promotion of private‐sector enterprise. As of June 2010, FMFI-S serves 17,934 clients, of which 1,626 maintain deposit accounts.
Grameen-Jameel has been working with FMFI-S since 2008 when it obtained the first of two consecutive guarantees to obtain US $7.4 million in local-currency financing.
For further information on FMFI-S, please refer to their website: www.akdn.org/akam_syria.asp