Jordan Loan Guarantee Corporation Launches "Kafala" Programme

Jordan Loan Guarantee Corporation Launches "Kafala" Programme

The Jordan Loan Guarantee Corporation launched a new programme "Kafala" which provides loan guarantees to financing small and medium-sized enterprises by banks and financial companies that operate according to the Islamic Sharia principles.

Through this programme, JLGC aims to expand its services and enable a large segment of small and medium-sized enterprises to access the necessary financing in accordance to the provisions of Islamic law, for the expansion and development of their projects in light of the limited traditional guarantees.

The programme comes in sync with government efforts to support the owners of these projects that contribute to the creation of employment opportunities and support economic growth in the Kingdom.

The Islamic International Arab Bank was the first bank to benefit and contribute to the development of this programme, and the first to sign a "Kafala" programme loan guarantee agreement with JLGC on Thursday, 21/06/2012 at the Headquarters of the Bank.

Director General of JLGC, Dr. Mohammed al-Jafari, , and General Manager of the Islamic International Arab Bank, Mr. Iyad Asali, both signed the agreement in the presence of His Eminence Dr. Ahmed Hlayel Chairman of the Sharia Advisory Board at the Bank and the Bank's Chairman of the Board, H.E. Mr. Faris Sharaf. Also attended the signing ceremony, H.E. Dr. Adel Sharkas Deputy Governor of the Central Bank of Jordan, H.E. Eng. Ya'rub Qudah, CEO of the Jordan Enterprise Development Corporation / JEDCO, His Eminence Dr. Saeed Hijawi / member of Sharia Advisory Board, Dr. Ahmed Eyadi / Executive Member of the Sharia Advisory Board of the Bank, Dr. Iyad Abu Haltam Director of the East Amman Industrial Investors Association, and the presence of representatives for other public and private sectors involved in the the development of small and medium-sized enterprises in the Kingdom.