H.E. Eng. Amer Al-Majali, Director General of Jordan Industrial Estates Corporation, sponsored a seminar held by the Jordan Loan Guarantee Corporation to introduce (the Jordanian exports credit guarantee scheme). The seminar was held at 11:00 am, on Tuesday October 20th 2009, at the King Abdullah II Industrial Park in Sahab.
The seminar was attended by the Vice President of Jordanian Investors Association and a number of industrial investors and those interested in the field of export credit.
Majali said that the issue of national export development has received widespread attention in recent years and took major concern of all economic and investment policies because of its great importance to the development of the national economy.
Assistant Director General for Technical Affairs Mr. Mohannad Al-Rashdan said that the Jordan Loan Guarantee Corporation has been offering loan guarantees since its establishment. The development of the Jordanian System to guarantee export and domestic credit was set to help Jordanian producers increase their sales in the domestic and external markets.
Dr. Abdullah Hylooz, export credit guarantee advisor, emphasized that any industrial company seeks to market their products in both local and foreign markets. On the other hand the importers and local merchants seek to obtain goods and services from anywhere in the world with the best conditions. This has become possible in the light of freedom and ease of international trade, which increased competition among exporters of the same commodity from around the world.
Dr. Hylooz added that the Jordanian exporters with the help of the JLGC guarantees, can increase exports to their current markets and enter new ones by offering easier payment conditions, without insisting on the opening of traditional LCs. In addition exporters are able to get bank credit for the value of their guaranteed exports as well as their local sales from commercial banks, under appropriate conditions.
Mr. Zaid Al-Kayed, Head of the Export Credit Guarantee Department at JLGC, showed that the total value of exports covered by the JLGC export credit guarantee has increased to $ 500 million, and that there are nearly 28 companies who applied for credit guarantee policies on exports, and added that JLGC has processed 180 policies for both exports and domestic credit guarantees. He noted that industrial companies have moved from traditional bank LCs which was followed in the past, towards the export credit system in view of its effectiveness and protection.
