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The Development Of The Microfinance Sector

microfinance
Held the second training program for the development of the microfinance sector in Bahrain with the participation of delegations from Chambers of Commerce, Gulf, Arab and Islamic World, and the participation of a number of agencies responsible for funding the smaller of the Islamic countries

The statement quoted the Chairman of the Chamber Essam Fakhro said, that the program of microfinance is the best option for the diversification of financing options to micro, especially in light of the difficulty in obtaining funding for the owners of these institutions, which would lead to other difficulties in the administrative and technical view of the adoption these institutions on the capabilities and expertise of their owners at work in the main, and the use of equipment less sophisticated and advanced than those used in institutions with large financial means in order to save money and minimize the cost.

For its part, expressed the Secretary-General to coordinate Chamber of Islamic Trade and Industry expressed the hope that the returns Forum the positive results of the microfinance sector and those who support it, she said during a speech at the opening ceremony that the issue of funding in general is one of the main obstacles that hinder economic growth and the financing of projects small with respect in particular, pointing out that the Islamic Chamber of Commerce and Industry in Pakistan is keen interest in the development and the development of the commercial sector is important, through its cooperation with its partners to organize several workshops and asked for training programs specialized in microfinance and the belief in the roles discharging performed by MFIs, pointing out that the issue of funding in general is one of the main obstacles that hinder economic growth and the financing of small projects.

Also showed that there are currently more than 67 million people all over the world want access to microfinance for their projects, and said that he is expected to grow this number steadily in the near future, which calls for developing a joint plan to support the owners of these institutions and protect them from exploitation which may be subjected by the banks in return for financial loans or through the conditions imposed on the beneficiaries.

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Microfinance Mechanism

ofid opec

The Arab Gulf for Development Program "AGFUND" and the OPEC Fund for International Development "OFID" was organized an international symposium, entitled "The role of donors in meeting the basic needs of the poor (education, health, energy, housing, agriculture) through the mechanism of microfinance" ; Which was held in the Austrian capital, Vienna, headquarters of the "OFID", 5 June 6, 2012. The main objectives of the workshop focused on: the definition of effective role for the use of microfinance mechanism to meet the basic needs for the life of a large segment of the poor in developing societies.

The workshop reviewed the benefits of linking the provision of financial services in the microfinance industry of non-financial services in the sectors of health, education, energy, agriculture and housing. Addressing the seminar, Prince Talal bin Abdul Aziz, President of AGFUND, and displays the vision program for the development of Arab Gulf in the recruitment of microfinance to fight poverty, and the positive results achieved by the project "AGFUND" to establish banks for the poor in the region. Was to provide models of successful experiences in the application of international microfinance.

 It is noteworthy that the most important challenges facing the microfinance industry and hinder their growth is the presence of a large financing gap in the industry between demand and supply for microfinance services, as they limit the expansion and the spread of existing institutions aiming to provide services to the poor in an effective manner to narrow this funding gap initiated "AGFUND" launch a fund to provide "financing facility" for microfinance banks founded by a number of Arab and African countries, and for other MFIs in the Arab region.

 Such an initiative of the International Symposium to encourage donors and financial institutions to open the windows to support the MFIs operating in developing communities to reduce poverty rates. And broke up a seminar to develop new mechanisms for definition by the microfinance sector and its future, and develop its role in reducing poverty, combating unemployment. Has also been monitoring the number of experiences and successful applications in the delivery of microfinance services integrated. It will AGFUND and OFID on the dissemination of these applications for the benefit of MFIs.

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