Policy and Regulatory Framework for Microfinance in Syria

Publication Date: Jan 2008
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Paper

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This paper suggests factors that could help Syria make progress in microfinance.

This paper argues that Syria’s momentum toward financial reform and liberalization, along with the commitment of key policymakers to expand microfinance, indicates a positive future for the country’s economy and its working poor.

The paper states that:

• Syria is in the wake of an economic and political upswing;
• The Government of Syria (GOS) has made consistent efforts to restructure and liberalize the economy, leading to positive results and an optimistic outlook;
• The private sector has become a major engine of economic growth, with private investment and the new private banking sector growing rapidly;
• Recent legislation has generated significant opportunities for developing the microfinance sector in Syria;
• A strategic mix of technical assistance, consensus building, training and education would help to:
  
  • Improve performance within the sector;
  • Bolster the understanding and capacity of implementers, regulators and policymakers;
  • Increase transparency among microfinance providers;
  • Integrate Syria’s microfinance sector with the global microfinance industry.
• Efforts should include:
  
  • Seeking technical assistance to resolve legal and policy issues;
  • Building capacity of policymakers and regulators to create an enabling and effectively regulated environment for microfinance;
  • Strengthening the sector through a variety of donor-supported training, networking and awareness-building activities.

The paper recommends that Syria should continue to capitalize on the interests and efforts of international donor institutions to further bolster economic reforms and secure investments that will catalyze growth.