President issues law on establishing Loan Risk Insurance Establishment

Damascus, SANA – President Bashar al-Assad on Monday issued law no. 12 for 2016 on establishing the Loan Risk Insurance Establishment.

The Establishment will be a private joint-stock company that doesn’t put up its shares for public offering, with its headquarters located in Damascus. It will be run by a board of directors and a director-general.

The law defines the goals of the Establishment as follows: enabling small and medium projects to procure funding, enhancing the role of financial establishments in supporting economic development by funding small and medium projects, and increase competitiveness in the financial sector.

The tasks of the Establishment are to insure the risks of the credit and loans provided for small and medium projects, procuring funds to do that, and investing the Establishment’s surplus funds at a value of no more than 25% of its capital (which is set at SYP 5 billion) in various low-risk financial investments.

The Central Bank of Syria and certain types of financial establishments can contribute to the Establishment’s capital, while international institutions and companies can contribute to the capital by less than 49% of its shares.

The Establishment will procure financial resources from its capitals, loans and credit from financial establishments, grants and loans from international, civil, private, and public establishments, commissions from projects, and income from investments.

Hazem Sabbagh

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