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

The following table shows the major JLGC Shareholders owning more than 5% of shares as of July. 2009

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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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ORGANIZATIONAL STRUCTURE

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Auditors

JLGC’s are audited by Messrs. “ Arab Professionals ”, members firm within "Grand Thornton Internationals Ltd"

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