Loan Risk Guarantee Corporation

It was established by Law No. 12 of 2016, with a capital of 5 billion Syrian pounds, distributed among 6 public banks, 11 private banks, and 3 microfinance institutions. It aims at enabling small and medium projects to obtain the required financing from financial institutions to contribute to supporting economic and social development and provide new job opportunities.

Objectives:

• Developing an introductory guide for small and medium-sized projects that introduces and categorizes them based on their scope of activity and geographical distribution. The aim is to create a national reference manual to supply these projects with support programs and administrative and financing facilities, in coordination with relevant authorities.
• Establishing the necessary policies and programs to encourage entrepreneurship and develop the small and medium-sized project sector. The goal is to enhance their contribution of these projects to the national economy and align their efforts with Syria's balanced economic and social development plans.
• Coordinating and aligning national development strategies and plans with those of small and medium-sized projects.

·       Facilitating effective coordination among public, private, and local bodies involved in project development to integrate their efforts and achieve common goals.

·       Connecting small and medium-sized projects with relevant institutions dedicated to sector development to enhance their utilization of institutional services.

·       Formulating policies to support local production in a sector-specific manner and identifying primary sources of support to reduce production costs.

• Creating a conducive business environment that fosters the development of the small and medium-sized project sector and facilitates their transition into the formal sector.
• Contributing to the establishment of a comprehensive legal and administrative framework, including relevant legislations and economic programs, to bolster the productive capacities of the small and medium-sized project sector. This framework aims to foster synergies with larger projects within value chains and increase the contributions of small and medium-sized projects to the gross domestic product (GDP).
• Undertaking initiatives to enhance the productivity and performance of existing small and medium-sized projects.
• Contributing to the expansion of national exports by diversifying products, reducing trade barriers, improving the competitive positioning of the goods of small and medium-sized projects against foreign alternatives, and facilitating their access to international markets.
• Safeguarding the interests of small-scale producers.

• Working towards establishing a national network of business incubators catering to small and medium-sized projects with various economic activities, including agriculture, industry, services, handicrafts, and heritage. This initiative aims to foster the development of small and medium-sized projects in coordination with relevant authorities.
• Facilitating small and medium-sized projects' access to financial services.
• Contributing to the regulation and oversight of the project financing market for governmental, local, and private sector institutions involved in financing small and medium-sized projects, in coordination with the Central Bank of Syria.

·        Monitoring and evaluating the performance of small and medium-sized projects by designing a set of quantitative and qualitative indicators necessary to measure their performance and assess their contributions to output, operations, and exports. These indicators should provide a clear understanding of the projects’ needs and enable effective interventions to develop this vital sector and enhance its role in development through the formulation of appropriate support policies.

• Contributing to the training and retraining job seekers to align their skills with the requirements of employment opportunities available in the labor market, in collaboration with relevant authorities.
• Engaging in training, qualification, and capacity development of human resources within the project sector.
• Promoting entrepreneurship culture and encouraging and supporting creativity and innovation within this field.

 

Tasks:

• Monitoring and overseeing the progress and development of small and medium-sized projects, and restructuring them to simplify procedures and reduce associated time and costs, in cooperation with relevant authorities.
• Establishing specific controls and standards for project financing in coordination with relevant authorities, aimed at directing financing to ensure sectoral and geographical balance.

• Issuing a project sponsorship document to small and medium-sized projects based on specific criteria set by the Council, facilitating its access to institutions involved in project registration, granting a license, financing, providing support, or training within the project sector.

• Building and developing a database to facilitate the provision of comprehensive system of information on the small and medium-sized project sector and the overall business environment, in coordination with relevant authorities, and updating it periodically.
• Conducting studies and research on the development of the small and medium-sized project sector and the broader business environment.
• Establishing business incubators for small projects aimed at nurturing emerging ventures specializing in specific activities or related fields.
• Conducting media campaign and activities, organizing exhibitions, conferences, seminars, and workshops in coordination with relevant authorities, and issuing bulletins to introduce the corporation's activities and provide guidance on how to benefit from its services.

• Participating in joint, bilateral, and regional higher committees, as well as all committees and bodies related to the corporation's activities where participation is necessary.
• Contributing to the creation of job opportunities for university and secondary school graduates, as well as job seekers, through specialized employment programs developed for this purpose and in cooperation with competent authorities.