A dialogue made by a group with Mr.Abbas Saedy general manager of Al-Thiqa Org. about the microfinance in Iraq , which holds about 22% of the market and this is the text of the dialogue

The microfinance industry in Iraq has grown in a work environment full of difficulties and Industry has started its way in Iraq since the second half of 2003 and has been able to access by the end of March 2010 to give more than 190,465 loans worth more than $ 424 million portfolio of loans 63 000 client list values 85.5 million (State of the microfinance industry for 2010 trade Project - U.S. agency).

Q 1 is Al-Thiqa organization in the former practice of microfinance in Iraq Could you give us a brief about the organization and what are the other Iraqi organizations working in the area and what are the financial services and non-financial provided by those institutions?

A \ A-Thiqa was founded in the beginning of 2004 on the impact of changes in the political landscape that has occurred in Iraq and the establishment from the outset was based on an Iraqi non-governmental and not-for profit, and now after nearly six years, became the Al-Thiqa of the largest and most successful Iraqi financial institutions operating in the area of finance and now Al-Thiqa has 12 branches spread in Baghdad and northern Iraq in each of Dohuk, Erbil and Sulaimaniya, Mosul, Kirkuk and Koya and Chamchamal and Kifri and Kalar, Khanaqin, Baquba and Baghdad.
And Al-Thiqa since 2006 is working for financial and operational sustainability, reaching full operational Alastdamtha 279% and 181% financial Alastdamtha, leaving it at the forefront of Iraqi financial institutions in terms of quality performance
As for the products offered by the trust, it is loans, small business and car loans and home loans and agricultural loans and short-term loans and private loans Palmhaya startups, loans and consumer confidence is a leading institution in the provision of Islamic finance through profit-sharing and the trust recently submitted product youth loans .
And have the confidence of a cadre of staff of the owners of practical experience and theory, which is referred to Mendez, which Mcnhamn offer training services to microfinance institutions and banks in Iraq working in this field as have the confidence coaches qualified certificates of training recognized by the ears and Alsija in the field of financial analysis, accounting, product development and management of arrears and calculation of interest rates and risk management, operational and strategic planning and management of human resources.
Q2 \ Q 2 Iraq is made of a total of federal regions Foundation, how to deal with those regions with the different nature and it is the organization's policies vary for different nature of the region?
A \ As we said earlier that the changes that have occurred in the Iraqi scene after 2003 and even before in the end of Kuwait War 1991 Iraq has witnessed a duplication of legal and regulatory environment imposed by Security Council resolutions, known in this area as the practical reality of Iraq is currently experiencing a two legal environment the first is in KRG.
(Erbil, Sulaymaniyah and Dohuk) and the central Government in Baghdad and other governorates, where the laws and legislative decisions P tireless environments different from the other depending on the work environment and as far as the nature of the work of MFIs, all environments of legal authority referred above are the laws and resolutions governing the work of microfinance almost be somewhat different from the other, which i for example, that you register the renewed confidence in the Kurdistan Region when it was open branches in northern Iraq.
Fortunately, and despite the different legal and legislative, who reminded us that no warranty not affect the nature of the work of the trust and its policies and procedures because we had from the outset we observe all legal requirements in both environments, which helped us to work policies and procedures and standardized
Q 3 \ environment of working in Iraq an environment full of troubled what are the legal and security challenges facing the Iraqi organizations in the exercise industry?
A \ There is no doubt that the biggest and the most important challenges facing the microfinance industry in Iraq is:
1. Indeed, the security unstable and of assassinations, bombings, kidnappings, threats and we are in Al-Thiqa can be adapted to this reality by building strong relationships based on trust and honesty with the community in which we operate, as well as through the selection of staff work from the same environment in which we operate.
2. Legal and regulatory environment and of the lack of legal stability to the environment of the work of microfinance and the lack of understanding and adoption of State for the microfinance industry and deficiencies in the understanding of the social mission that desire to MFIs achieved in our humble opinion, this challenge is most important, which hampers the development and functioning of industry in Iraq.
Q 4 \ attributed the arrival of Iraqi MFIs target groups less than 1% according to a report of the development of the microfinance industry for 2010 Trade Project - How will these institutions increase that percentage?
A \ I will speak on the subject as far as it concern Al-Thiqa Since we noticed that we are fully Angti market, which led us to:
1.Work to train our employees well so they are able to service customer seamless
2. Product diversification, which provides multiple options to the borrower, which makes us able to meet the needs of customer
3. A study of the market, which is easy for us spread to new areas constitute a significant proportion of the market
4. Open new branches in different regions, which will facilitate the delivery of microfinance services for less cost and complete.
5. Development and modernization of lending policies and procedures in line with the developments witnessed by the Iraqi reality
And that what we have mentioned above contributed to and effectively in the coverage of confidence for more than five market, the microfinance industry in Iraq and we are constantly working on the development of this ratio through the surveys that we do from time to time in order to survey the opinions and reactions Mguetredana for our service which helps and contributes in the development of our work continuously.
Q 5 \ the Iraqi Central Bank is heading to issue regulations that allow the transformation of organizations working in the field of microfinance organizations, non-bank financial What is the point which lies on those from this transformation?
A \ The truth is that this question is very important because it affects the liver of the microfinance industry in Iraq and in our humble opinion that all the Iraqi institutions are not eligible for such a transformation, where it is known that such a transformation requires the availability of many of the conditions and requirements of legal, financial and management that are not owned by institutions the current Iraqi and Multi transformation came without studying, as a kind of alternative solutions and more precisely the type of reaction to the failure of efforts to persuade the Office of the Organization Department of the Secretariat of the Council of Ministers to adopt the Iraqi organizations registered in this office that offers the microfinance industry, as the management office organizations, according to his interpretation of legal texts that govern the work of Iraqi organizations that the prerequisite for all organizations that are not meaningful to make a profit and that its work should be limited to the field of human services and voluntary only, which pay it a project of Commerce to work to try to persuade the Iraqi Central Bank to issue instructions authorized organizations of the Iraqi transition to banking institutions is not a bank and the structure of the legal regulated under the law of companies taking advantage of a legal text very briefly in the law of the Iraqi Central Bank in force and which stated that the work of microfinance is permissible without going to the provisions as to what this passport, leaving the way open to interpretations and explanations diverse
I am not optimistic the issuance of such regulations that allow the transformation of organizations working in the field of microfinance organizations, non-bank financial because it certainly will include a lot of impossible conditions that are not available in institutions for the time being at least, for example but not limited to conditions relating to the requirements of capital and Career of institutions and information system and strict control of the Department of Registrar of Companies on the work of these institutions and much more.
In our opinion, that such a step any topic of change must be studied thoroughly and from all aspects and consider the age of industry and a balance between the pros and cons of such a transformation, and that such a move must be the result of the actual need for the work of MFIs Iraqi, not be a reaction to the failure of what until this step to not be hasty
Q 6 \ What is the support required from the large Arab organizations working in the field or from the Microfinance Network of Arab Countries for organizations working in Iraq?
A \ to hide the one of the workers in the microfinance industry over the importance of organizations large Arab working in the field or the importance of the Microfinance Network of Arab Countries - ears, and that role can be played by these organizations or networks is reflected in the educational role of the funding partners younger in Iraq, especially the government and the Central Bank by calling for prohibitions of conferences, workshops and training courses in order to promote them to the extent that they can understand the message of economic and social development of microfinance assistance, advice and technical support in the preparation of legislation and rules that govern the industry and the organization of field visits exchanged efforts to increase knowledge, as suggested here that Sanabel will coordinate with the Arab League in order to provide political support for the microfinance industry and not just the current reality.
Q 7 \ when will be starting the Iraqi network of microfinance and what are the objectives assigned to achieve them?
A \ I As a General-Director of Al-Thiqa Orq. for small business loans one of the founders of the network of Iraqi Microfinance and we are working in recent months with the draft trade in order to complete the legal requirements to politicize the network and the preparation of the rules of procedure have been several meetings booted to complete the foundation and will be held the constituent meeting to launch the network's of Iraq MF on 23 /September / 2010, and the network Al-iraqiah Microfinance aims to achieve:
ï؟½ strengthen the capacity of MFIs through training on a needs basis, technical assistance, exchange of experiences.
ï؟½ advocating for an enabling environment for microfinance conducive to the inclusion of microfinance in the financial sector.
ï؟½ to promote best practices among microfinance stakeholders in the country through the efforts of transparency, standardization, peer learning, exchange of information.
ï؟½ encourage innovation in the microfinance sector through research and to highlight the main trends in technological developments, product diversification, and new financial services.
Finally I thank very much for the good professor to give me the opportunity to shed some light on the microfinance industry in Iraq.