The Jordan Loan Guarantee Corporation (JLGC) and the “Employment-oriented MSME Promotion Project” (GIZ MSME), implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), signed a cooperation agreement. The agreement sets the ground for improving the efficiency of loan guarantee operations by developing and implementing a digitalization strategy, which will enable the company to increase access to credit guarantees for small and medium sized enterprises.
The agreement was signed by H.E Dr. Mohammed Al Ja’fari, the Director General of JLGC, Ms. Elisabeth Girrbach, GIZ Jordan Country Director, and Ms. Diana Hollmann, GIZ MSME Project Manager, in the presence of the Chairman of the Board of Directors of the JLGC and the Deputy Governor of the Central Bank of Jordan, H.E Dr. Maher Sheikh Hassan.
JLGC’s Chairman H.E. Dr. Maher Sheikh Hassan expressed his appreciation of this partnership, which aims to enhance the strategic cooperation between the two institutions. Under the agreement, GIZ will provide technical support to JLGC and support the transfer of best international practices in the field of digitizing loan guarantee and export credit guarantee processes. Dr. Sheikh Hassan added that this agreement is part the company's constant endeavor to develop opportunities for small and medium-sized companies to obtain financing on easy terms and according to efficient and effective work procedures, and to expand the company's role in developing national exports through the export credit guarantee program supported by the Central Bank.
The Director General of JLGC, Dr. Mohammad Al Ja’fari said that the company is constantly striving to develop its programs, expand its services and the volume of its business. In order to keep pace with the rapid developments the market is witnessing locally and globally, JLGC is seeking to improve work procedures and the electronic linkage system with its partners from banks and various financial institutions, as well as Jordanian exporters and merchants. Dr. Al Ja’fari stressed that there was an urgent need to develop work systems in line with the emerging and accelerating requirements of SME owners, Jordanian partners and exporters and to invest in technology in an advanced manner. He added that the Covid-19 crisis has further highlighted the great need to accelerate the digital transformation processes in various sectors and activities.
Ms. Elisabeth Girrbach expressed her appreciation of this new partnership with JLGC. The cooperation aims to make it easier and faster for MSMEs to obtain loans and export finance. It is part of the GIZ’s efforts to help promote financial inclusion and promote employment opportunities in Jordan.
Ms. Diana Hollmann added: “Under this new and important cooperation agreement, we aim to support JLGC in developing and implementing the digital transformation strategy. This includes the development of a clear time schedule and action plan to ensure the success of this partnership.”
