JLGC and IFC signed an agreement to support Lending to Smaller Businesses in Jordan

JLGC and IFC signed an agreement to support Lending to Smaller Businesses in Jordan

On the 15th of September 2013, The Jordan Loan Guarantee Corporation signed an agreement with the International Finance Corporation (IFC) in cooperation with The World Bank Group to help increase lending to smaller enterprises in Jordan. The agreement was signed by Dr. Mohammed Al Jafari / Director General for JLGC and Dr. Ahmad Attiga / IFC's Country Manager and Head of Mission in Jordan. The signing ceremony took place at the Central Bank of Jordan under the patronage and attendance of CBJ Governor H.E.Dr. Ziad Fareez, and Deputy Governor /JLGC Chairman H.E.Dr. Maher "Al Shikh Hassan", and Deputy Governor H.E.Dr. Adel Sharkas, it was also attended by a number of high-profile members from CBJ, IFC, WB and JLGC.

This advisory agreement aims to support the Jordan Loan Guarantee Corporation (JLGC) as it scales up its lending operations. The JLGC guarantees loans between borrowers and banks, and many of its customers are micro, small, and medium enterprises that have struggled to obtain financing. IFC will help JLGC for building its institutional capacity, maximize its outreach, and develop new financial products that cater to the needs of small businesses and entrepreneurs. On the other hand, SME's are an important factor for job creation and growth. Properly nurtured, SMEs can effectively contribute to the motivation of the economic development at the Kingdom

“This partnership will enable JLGC to enhance its loan guarantee program to help more creditworthy firms get the financing they need to grow their business. JLGC is playing an active role to give the banks and financial institutions trust in the granting operations, it also dedicates its efforts to expand collaboration with the international institutions specialized in SMEs ” said Dr. Mohammed Al Ja'fari, Director General of JLGC.

“A lack of access to finance remains a strong barrier to economic growth and job creation in the region,” said Ahmed Attiga, IFC’s Principal Country Officer in Jordan. “Enabling financial institutions to support smaller businesses will accelerate growth, alleviate poverty, and foster a dynamic and sustainable economy.”

In conclusion, CBJ Governor H.E.Dr. Ziad Farez thanks the IFC and JLGC for their joint efforts to support SMEs Sector in Jordan and urges both sides to improve their work efficiency according to the international best practices, confirming the continuity of CBJ support to the welfare of the national economy.