Raising the Maximum Loan Guarantee Amounts

Raising the Maximum Loan Guarantee Amounts

The Board of Directors of the Jordan Loan Guarantee Corporation decided to raise the ceiling of loans guaranteed for the owners of small and medium enterprises to JD 100 thousand instead of JD 70 thousand for the Productive Loan Guarantee Programmes, and from JD 430 thousand to JD 550 thousand for the EJADA Industrial Financing and Leasing Programmes. The decision came in response to the increasing demands of SME owners in the Kingdom and in coordination with local banks. The company hopes this decision will increase the volume of guarantees granted by the company and expand the necessary access to finance for these projects from local banks.

The Jordan Loan Guarantee Corporation was established in 1994 to promote access to the funding necessary for the establishment and expansion of local SMEs. And provided guarantees for a total loan amount of about JD 290 million. The company also operates a specialized Programme for the Export Credit Guarantee (Post Shipment Guarantee Programme) and covers the equivalent of 90% of the value of executed shipments. JLGC also provides a credit information enquiry service for Jordanian exporters about potential importers.

The Jordan Loan Guarantee Corporation expanded the umbrella of its work lately by providing guarantees specialized to the financing provided in accordance with Islamic Sharia law and has developed a special programme in cooperation with the Islamic International Arab Bank. It has also signed a series of agreements with other local banks to provide guarantees on an integrated funding level, in addition to the signing of a special agreement to guarantee the financing granted by the Development and Employment Fund for the Entrepreneurs projects with the support and sponsorship of the Ministry of Planning and International Cooperation.