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Mission Statement
To
enhance sustainable economic growth in Jordan through improving the
credit environment available to the economically viable small and
medium sized enterprises and national exports by providing them with
credit and loan guarantees.
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Goals and Objectives
1. Utilization of guarantees to fully or partially cover the risks
of loans granted by banks and financial institutions. These loans
should be directed towards establishing economic projects or
expanding existing ones in order to increase production capacity and
marketing efficiency as well as create new job opportunities and the
possibility of earning or saving foreign currencies.
2. Utilization of guarantees to cover the risks involved in export
credit, particularly in those industrial sectors, which are in line
with the aims of JLGC.
3. Re-guaranteeing any or all of the risks that pertain to the loans
that JLGC guarantees already.
4. Utilization of guarantees for JLGC’s own accounts or for other
agencies accounts.
5. Developing the tools, means, and models related to the work of
JLGC (whether modern or conventional) and training the staff on
their use in the various fields. This includes the guaranteeing of
credit operations in line with the doctrines of the Islamic Law
(SHARIA’) and those which realize JLGC objectives.
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Corporate
History / Establishment
The Jordan Loan Guarantee Corporation was established as a public
shareholding company in accordance with the Jordanian Companies’ Law
and registered in the registry of the public shareholding companies
under number 242 on 26/3/1994. Its establishment was formally
declared in the Founders Assembly meeting held on 17/4/1994.
The Corporation was given permission to start operating as of
7/5/1994.
It is worth mentioning that the establishment of JLGC came in
response to the decision undertaken by the Cabinet session of
24/8/1993, which approved the establishment of a public shareholding
company for guaranteeing loans to small and medium sized
organizations. The subscription of JLGC’s shares would be limited to
the Central Bank of Jordan (on behalf of the Government of Jordan),
financial institutions, insurance companies, and other related
establishments. Its capital was to be JD 7 million.
The Central Bank of Jordan’s subscription in the Corporation came
out of a USAID grant, which was included in the agreement of the
loan guarantee project signed between the Government of Jordan and
USAID under number 0225-278, dated 31/8/1988.
In 1997, the Corporation took on the function of Export Credit
Guarantee and its capital was increased to JD 10 million (USD 14
million).
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The
Shareholders
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There following table shows the major JLGC
Shareholders as of November 2007
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Share holder |
No. of shares subscribed |
Percentage of gross declared capital (%) |
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Central Bank of Jordan |
4,775,000 |
47.75% |
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Commercial Banks |
2,365,900 |
23.66% |
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Private Companies |
655,077 |
6.55% |
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Governmental & Semi Governmental Institutions |
849,000 |
8.49% |
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Individuals |
1,355,023 |
13.55% |
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Boards of Directors
JLGC is managed by a Board of Directors, which
is composed of seven members. According to the JLGC Memorandum of
Association, the Central Bank of Jordan appoints two of the members
of whom one will be Chairman as long as CBJ participation (in JLGC’s
capital) remains above 45%. The rest of the shareholders select the
remaining members. Membership in the Board of Directors is for a
period of four years that ends with the election of a new Board.
The Chairman and Members of the Board are:
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Mr. “Moh’d Said” Ibrahim Shahin
Representing the Central Bank of Jordan |
Chairman |
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Mr. Moh’d Mousa Dawood
Representing the Arab Bank, PLC |
Deputy Chairman |
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Mr. AbdulElah Salem AlHnaity
Representing the Cities & Villages Development Bank |
Member |
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Mr. Salah Al Momany
Representing the Social Security Corporation |
Member |
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Mr. Khaled Najjar
Representing the Industrial Development Bank |
Member |
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Mr. Mo’taz Barbur
Representing the Central Bank of Jordan |
Member |
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Mr. “Moh’d Awni” Khasawneh
Representing the Housing Bank For Trade And Finance |
Member |
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Departments &
Divisions
The following are the main departments and units of JLGC:
- Risk Management Department
- SME Loan Guarantee Unit
- Personal & Housing Loan Guarantee Unit
- Industrial Finance Loan Guarantee Unit
- Export Credit Guarantee Unit
- Follow up Unit
- Claims & Recoveries Unit
- Support Services Department
- Financial Affairs
- Administrative Affairs
- Information Technology
- Internal Auditor
- Compliance & Control
- Managing Director's Office
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Auditors
JLGC’s are audited by
Messrs. “Allied Accountants”, members of Earnest Young Group.
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