JLGC and Capital Bank sign an agreement to provide loan Guarantees to SMEs

JLGC and Capital Bank sign an agreement to provide loan Guarantees to SMEs

On Sunday, 25 October 2015, the Jordan Loan Guarantee Corporation (JLGC) and Capital Bank signed an agreement under which JLGC will guarantee the loans granted by Capital Bank to small and medium-sized enterprises (SMEs) as part of the financing of fixed asset and financing of purchases programs.

The agreement was signed by Director General Dr. Mohammed Al-Ja'fari, on behalf of JLGC and General Manager, Haytham Kamhiyah, on behalf of Capital Bank, in the presence of a number of executives from both sides at Capital Bank headquarters.

Commenting on the agreement, JLGC Director General, Dr. Mohammed Al-Ja'fari, said, “Signing this agreement furthers JLGC’s objectives of providing guarantees to SMEs to enable them to obtain the necessary funding for the development of their business away from conventional collaterals that continue to be an obstacle to SME financing. These obstacles may be overcome through partnerships between JLGC and the banking sector.”

Mr. Kamhiyah stated: “This agreement aims to provide the necessary guarantees to facilitate the financing of SMEs” , highlighting the great role played by JLGC in offering SMEs stability and incentives, in addition to the speed in executing and granting facilities under the two above-mentioned programs. Capital Bank expanded the range of services offered to SME’s by opening service centers in selected branches and launching special financing products such as financing of purchases, financing of fixed assets, and others.

Signing this agreement reflects the company’s eagerness to play a leading role in supporting SMEs sector given its vital role in economic development and creating job opportunities. It also reflects the bank readiness to improve access to finance at preferential rates over long terms for SMEs operating in various sectors such as renewable energy, tourism, industry, and agriculture, either through Central Bank advances or through regional or international corporations.