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01.10.2011

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Lebanese MFIs are not charitable organizations

While microfinance in Lebanon is expected to grow, the sector suffers from lack of financing-related regulation according to the United Nations Economic and Social Commission for Western Asia

Source : Daily Star

While microfinance in Lebanon is expected to grow, the sector suffers from lack of financing-related regulation according to the United Nations Economic and Social Commission for Western Asia.

Since there is no clear regulating body, the Interior Minister supervises the MFIs. Since MFIs are considered charitable organizations, they cannot receive deposits and can only accept donations. However, according to the ESCWA, donations are an unreliable source of financing due to the recession. Their report advises that the Lebanese Central Bank become the regulatory body of MFIs so that financing can come from other sources.
According to the IFC, a branch of the World Bank, Lebanese MFIs cover only 11.5% of the total demand for microfinance.

Traduction : Catherine Jan

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