FMFB Syria

completed

_x000C_Aga Khan Agency for Microfinance (AKAM)’s micro-credit program was first established in Salamieh in January 2003 and covers a network of 7 branches across Syria with Damascus being opened in late 2005. The total amount disbursed to-date is $50 million reaching over 38,000 borrowers of which 25% are female. The outstanding portfolio, as of December 2007, stands at $10.9 million with Portfolio at Risk > 30 days at 1.11%. Currently, AKAM’s program offers a variety of loan products such as individual loans, group loans, education loans, health loans and home improvement loans. The loans are extended in local currency averaging $876 equivalency and ranging between 3 to 24 months depending on their specific purpose. The portfolio is spread across various sectors such as trade, services, and transportation (48%) and agriculture (40%) demonstrating its strong rural focus. The program’s assets and liabilities are expected to be consolidated into First Microfinance Bank (FMFB) Syria, following procedures established by the regulator. FMFB Syria will aim to stimulate income-generation in low-income areas and promote small-scale agricultural and industrial enterprises. It will provide credit and/or deposit products to support micro entrepreneurs, small-scale businesses, and rural development.