A proposal for the establishment of micro-finance fund

by **Ponee** Thu Jul 16, 2015 9:04 am

in order to get the economy moving in the country and support for small projects to provide many jobs and attracting manpower, economic central bank adviser called for the establishment of a fund in one of the state banks with a capital of 100 billion dinars, aimed at lending to micro-enterprises (Microfinance) through private financial institutions.

Counselor for Economic Affairs in the Prime Minister d. Abdul Hussein Al-Anbuge pointed out that the aim of establishing this fund is required at least for projects funding of 20 million dinars, and even the world that are not targeted by banks at the central bank initiative border (1) trillion dinars to finance small and medium enterprises (SMEs), and the possibility of agitated by Fund management in the Bank to be considered the "owner".

He said Anbuge "morning" that "microfinance guestrooms institutions (12) scattered Foundation in Iraq could open a private in the government concerned bank accounts to deal with this fund exclusively for the purpose of making use of his money, and are strengthening the monthly accounts in amounts according to the conversion of the Fund's account to the account of the institutions by order of the central bank notices.

and works MFIs up to lend a minimum do not target banks, as the maximum size of the loan granted by these institutions up to twenty million dinars, and the rate of (3500) dollars to the borrower Wahid, and is working to manage lending through in accordance with international standards modern systems, and the accounts audited according to international standards by international auditing institutions known.

He Anbuge the possibility of the expansion of microfinance institutions lending of their funds, beyond their ability lending, taking into account the Fund's ability to strengthen accounts, to be fed monthly as far as the expense of the loan for this new product in accordance with the offering documents for the management of the fund, he did not account used for any other purpose that is directed lending and the report and documents.

The central bank urged the adoption of the financial bags organizations as collateral, Chancellor saw that repayments for this loan must to be in private institutions accounts of this fund for this purpose, and thus achieve the central bank control over the Fund and the accounts of its own institutions, as well as ensure that the possibility of organizations to dispose of Special Accounts.

and achieved MFIs rate payment of not less than (99) percent for lending operations which They practiced, where these institutions cover most of the area of Iraq, especially the rural areas that lack financial services, as well as it has provided more than 600 thousand loan during the eleven years (since 2004), one billion and four hundred dollars, and created jobs directly to more than ( 180) thousand jobs, as maintained on the sustainability of more than (500) A project of the meridian, as well as the microfinance industry has achieved more than 12 million banking movement between withdrawals and deposits to borrowers.

The central bank launched earlier initiative to support the establishment of small and medium enterprises through private banks represented customize it amount trillion dinars for private banks to lend to people-oriented in order to set up their projects so as to contribute to the advancement of the economy and create jobs contribute to absorb unemployment.

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