UNDP Signs $2.9 Million Agreement to Boost Microfinance in Syria

The United Nations Development Programme (UNDP) has signed an agreement worth $2.9 million with four microfinance banks in Syria.

This agreement, attended by Minister of Communications and Information Technology Abdelsalam Heikal, Governor of the Central Bank of Syria Abdelkader Hosariya, and Dr. Abdullah Dardari, Assistant Secretary-General of the United Nations and UNDP Director for Arab Countries, marks the first collaboration of its kind in Syria.
The initiative aims to provide access to funding for over 1,600 people, contributing to a shared vision for inclusive economic growth. It demonstrates a commitment to enhancing financial inclusion and expanding access to credit, ultimately improving livelihoods.
Dr. Mohammed al-Gharib, a university professor and economist specializing in small and medium enterprises, explained that this financing method is superior to the previous approach of offering free grants for micro-projects. He argues that individuals who receive loans take their commitments more seriously because they are responsible for repaying the loan installments. This loan structure makes financing available at no cost, but presents the challenge of ensuring the project becomes profitable so it can repay the borrowed amount.

Amal Farhat