BAGHDAD - the joy of pumice
facing micro-enterprises many of the obstacles that limit the activation and development, especially in terms of funding, so it emphasizes the need for an economic specialist finance this type of project support institutions.
In this regard noted economic adviser in the prime minister d. Abdul Hussein Al-Anbuge that the MFI is a civil society «non-profit organizations», as is the case in many countries of the world, which aims to support very small projects.
He said Anbuge «morning» the most important obstacles facing these projects is that the cost of lending administration smaller high because fixed costs are the same whether small or large loan, so it is distributed between the monetary units lender is lower the cost of lending per unit larger, as well as that this type of lending will fail and become a trap for the borrower unless accompanied by «kegs Business», as it embraces Microfinance staff borrower and his little from being an idea to produce and win, and the longer these factors raise costs and carried out by government banks or private.
As the adviser said the microfinance industry dependent on grants made by the donor countries, according to indicators that show the creation of a large credit contributes to the get the economy moving, but these grants have stopped, as there are still a large gap between the size of loans available and the size of the demand for them.
He saw the recovery of the national product and stimulate the industrial sector need for this type of small projects and funding for expansion in this area, but the recent initiative of the Central Bank in support of small and medium enterprises do not include microfinance because the banks do not exercise this activity in the first place, as well as the central bank did not find legal cover to lend to microfinance institutions, because they lend to banks
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