JLGC and Jordan Islamic Bank (JIB) cooperate to support Finance to SMEs

JLGC and Jordan Islamic Bank (JIB) cooperate to support Finance to SMEs

Jordan Loan Guarantee Corporation and Jordan Islamic Bank (JIB) signed a cooperation agreement on the 24th May, 2015 at JLGC’s offices. The guarantee agreement aims to provide finance to SMEs according to Islamic Shari’a covered by the guarantee of JLGC.

The agreement was signed by H.E.Dr. Mohammed Al Ja’fari; JLGC Director General and Mr. Mousa Shihadeh; CEO and the General Manager of Jordan Islamic Bank in the presence of H.E.Dr. Maher “Shiekh Hasan”; Deputy Governor of the Central Bank of Jordan and the executive managements of the company and the bank.

Dr. Ja’fari indicated that the company exerts its efforts to develop SMEs access to finance, specifically the finance based on Islamic shari’a. JLGC surveys showed that the majority of SMEs owners prefers Islamic Finance, while 70% of them didn’t manage to expand their projects because of the lack of guarantees required by banks.

The company looking forward to strengthen SMEs access to finance through “Kafala” agreement with the Jordan Islamic Bank which has a wide base of customers and 90  branches spread all over the kingdom.

Mr. Mousa Shihadeh, JIB General Manager said that Shari’a Supervisory Board at the bank finalized the necessary procedures of the agreement that enables the bank to lend SMEs owners in compliance with the Islamic Sharia’ and in accordance with the provisions of Jordan Islamic Bank’s Special Law. That support to SMEs will contribute in the growth of the national economy through encouraging business owners to develop and expand.

Generally, JLGC cooperates with banks to overcome difficulties that SMEs usually face to access finance with proper costs and tenors.