The new branch will expand services offered to marginalised segments of the population with the aim of providing more poor people with financial services. According to studies undertaken by the International Finance Corporation (IFC) and KfW Bankengruppe (KfW), an estimated 260,000 to 420,000 households in Syria require access to microcredit for business purposes. One million households require credit for non-business purposes such as housing, education and medical care. FMFI-S is the largest provider with over 14,500 loans.

“This is another forward step in our plan to focus on making financial services accessible to everyone, helping to include the poor and marginalised segments in the economic cycle,” said Jacques Toureille, General Manager of the Aga Khan Agency for Microfinance (AKAM) who also attended the opening ceremony.

FMFI-S is the leading private-sector microfinance provider in Syria. Originally established in 2003 as a microfinance programme, FMFI-S completed its transition to a deposit-taking institution in October 2008. Over the next five years, FMFI-S’s network will grow to 23 branches throughout the 14 Syrian Governorates. Its network-wide portfolio is also expected to grow to over 86,000 loans.

In order to enable the bank’s expansion, the government has recently approved the entry of capital from foreign entities into FMFI-S. In the coming months, KfW, the International Finance Corporation, and the European Investment Bank will become shareholders of the institution so that FMFI-S can expand its financial services to the poor in Syria.

FMFI-S is a part of AKAM, which currently operates microfinance institutions in 14 countries throughout Asia and Africa. AKAM is a private, international, non-denominational and non-profit development agency that strives to assist vulnerable populations by providing them with a range of financial services. AKAM’s ultimate aim is to help enhance the quality of life and improve economic security.

Syrian Deputy Prime Minister Dr. Abdullah Dardari opened the branch in the presence of the Governor of the Central Bank of Syria, Dr. Adeeb Mayaleh, and the Aga Khan Development Network (AKDN) Resident Representative in Syria, Mr. Mohamed Seifo, said a press release.Related Posts:

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© 2010, Microfinance News. All rights reserved. 2008-09

The health clinics programme, which is expected to continue, is meant to help fulfill FMiA’s goal of providing affordable insurance products carefully tailored to the needs of poor families.
“FMiA hopes to keep playing an important role in making health care easily available to its clients and others that need it,” said Al Malik Khoja, the acting CEO of FMiA.

Microinsurance services offered by FMiA include: hospitalization insurance, savings completion and credit life. Counselors at the clinics offer advice on microinsurance products, including how:
•    Health insurance provides cashless coverage for medical expenses incurred in private and medical hospitals due to serious illnesses, obstetric care and accidents,
•    Savings completion ensures that a family’s savings objectives are met even in the event of the death or injury of the breadwinner,
•    Credit life helps to protect the family of the loan borrower from debt in case of death or serious disability.

FMiA Pakistan is the first of two microinsurance institutions operated by the Aga Khan Agency for Microfinance (AKAM). FMiA focuses on the needs of poor families, in both the formal and informal economies, by providing them with a range of financial products that will help protect their assets and well-being.

AKAM is a not-for-profit; non-denominational, international development agency created under Swiss law and it has 13 microcredit operations and two microinsurance operations in 13 countries. Its headquarters are in Geneva, Switzerland. It is governed by a Board of Directors and the Chairman of the Board is His Highness the Aga Khan.Related Posts:

• Aga Khan Agency for Microfinance expands in Syria
• ILO Microinsurance Facility calls for grant proposals
• ILO Microinsurance Innovation Facility calls for grant proposals
• Study explores microinsurance that works for women
• Freedom from Hunger research explored insights on Microfinance and Healthcare needs
• Microinsurance – The first option for the vulnerable to manage risks
• Insurers aim high: Vow to cover 500 mln Indians in 5 years
• Microinsurance fund LeapFrog invests $6M in Africa’s AllLife

© 2009, Microfinance News. All rights reserved. 2008-09