Micro Islamic Finance in Balbala
FD 50 million to solidarity groups in Hayableh sector An awareness day on micro Islamic finance was held last Sunday at Hayableh neighborhood in the town of Balbala. A total of 300 women spread over 11 sectors Hayableh, received each a loan of fifty thousand francs now.
The Djiboutian Social Development Agency (ADDS) organized last Sunday a day of awareness for the inhabitants of Hayableh neighborhood in the town of Balbala.
A total of 300 residents, spread over 11 sectors Hayableh, were each a loan of fifty thousand francs now. This interest-free financing is in compliance with Shariah principles. It is mainly dedicated to women with income generating activity.
The objective of this awareness day is twofold. This is not only to raise a total membership of women around best practices for repayment of micro Islamic finance but also to reduce urban poverty in the municipality of Balbala.
The Director General of the ADDS, Mahdi Mohamed Djama, confirmed to support the doubling of the amounts awarded if the beneficiaries repay on time and become credible. Such actions will, he added, a positive impact in the fight against urban poverty.
« Teams of ADDS and those of the common Balbala traveled the various subdivisions Hayableh. At the end of their proximity talks with the residents, we agreed to distribute a budget of 15 million FD in favor of solidarity groups. This funding will be made by micro Balbala Islamic trust. We hope that we will quickly increase this round of funding, « he said in substance.
Unlike conventional finance, Islamic finance does not practice speculative methods and does not offer interest taken to pay the loans. Islamic banks have used other levers to get paid. »
Islamic finance is based on five principles which bans taking of interest, uncertainty related to speculation and illegal assets such as alcohol, games of chance or tobacco, all prohibited by Sharia. It is based on the sharing of profits and losses, and the existence of an underlying asset. It requires no collateral in contrast and is devoted exclusively to the vital needs of the country.