Cooperation Agreement between Jordan Loan Guarantee Corporation (JLGC) and the Iraqi Company for Bank Guarantees (ICBG) Ltd.

Jordan Loan Guarantee Corporation and The Iraqi Company for Bank Guarantees Ltd signed a cooperation agreement on August 1st, 2006. The agreement was signed during a visit by the Iraqi Company for Bank Guarantee scheduled meeting in Amman, Jordan. JLGC offered to share it's know- how and expertise with ICBG by providing training to its staff and Iraqi bankers who will administer the guarantee schemes. 

Over a period of three days JLGC board of directors, managers and local senior bankers were available to provide the Iraqi delegation with insights and share their experience with JLGC.

JLGC department managers presented and shared with the delegation the daily operations of their department after a short welcoming remark from the Managing Director Mr. Hammami, at the end of each presentation many questions where entertained.

Signing Cooperation Agreement with BLOM Bank

The Jordan Loan Guarantee Corporation in its continuous effort of supporting SMEs, signed an agreement with BLOM Bank at the JLGC offices in Amman which emphasized the procedures and conditions involving the guarantee operation including the indemnifications of the default guaranteed loans provided by the bank.

JLGC through it’s Industrial Finance Department (EJADA), aims to provide the necessary guarantees to encourage different financing institutions to provide small and medium enterprises with the necessary funds they need.

Signed the agreement Dr. Adnan Al Aaraj the General Manager of BLOM bank and Mr. M. Said Hammami JLGC’s Managing director.

With this cooperation with BLOM the number of participating banks in this guarantee programme becomes 17 banks.

General Assembly Meeting

The 12th Annual Public Assembly Meeting was held on Sunday March 26th 2006 in the Central Bank of Jordan in which the 12th Board of Directors Report on JLGC’s 2005 Operations was discussed and approved along with the 2006 Future Work Plan.

The Auditor’s Report for the fiscal year ending on 31 December 2005 was also presented and the Balance Sheet and Income Statement were approved, and a 7% dividend was agreed upon.

Chairman of the Board His Excellency Dr. Umayya Toukan Governor of the Central Bank of Jordan welcomed attendants and  praised the company’s efforts to evaluate its performance during the past years and designing its future plans to work together with the ever changing national economy in order to increase the positive impact on the overall economy through the guarantees it offers to Jordanian SMEs and Exporters.

Managing Director Mr. M. Said Hammami presented a brief summery on JLGC’s operations during 2005 in which the company guaranteed 990 loans with total values of JD 28 Million out of which the guaranteed value was JD 19.4 Million, and the Credit Guarantee Programme guaranteed 22 policies valued at JD 44.7 Million covering 145 Local and Foreign buyers.

Shareholders Equity in 2005 reached JD 17.5 Million in 2005 compared with JD 15 Million in 2004, and the company’s Assets were valued at JD 20 Million compared to JD 17.1 Million in 2004. As for JLGC’s net profit in 2005 it exceeded JD 2.7 Million.

The operational growth in JLGC is a result of the overall economic growth in Jordan which is constantly directed and followed up by His Majesty King Abdullah II who’s continuous efforts to attract foreign investments to Jordan and endlessly working for Jordan’s development is yielding positive results.

Transfer EJADA fund to JLGC

The European Commission signed a number of agreements with the Ministry of Planning and International Cooperation, the Central Bank of Jordan, and the Jordan Loan Guarantee Corporation, facilitating the transfer of the JD 5.1 Million Fund to JLGC, which will increase its guarantee providing power and therefore promoting its developmental role.

The fund was run by EJADA in cooperation with JLGC’s Industrial Finance Programme since 2001 to help provide the necessary guarantees needed by the banks to finance Jordanian SMEs.

Since then 117 loans were guaranteed through this fund with a total value of JD19 Million and a JD 12 Million Guaranteed amount which contributed to the success of the financial aspect of the EJADA Programme, and proved worthy of the ownership of the fund.

Second Meeting for Supporting Agencies of SME’s

JLGC joined the National Fund For Enterprise Support (NAFES) & Empretec Jordan UNCTAD's integrated capacity-building programme, the Office for Community Development in Aqaba’s Special Economic Zone in the second “SME Supporting Agencies” meeting on the 8th of March 2006 in Aqaba.

The seminar aims to promote these agencies to Aqaba’s SMEs within the Special Economic Zone and present the financial & technical support available to them.

JLGC’s Managing Director presented the various programmes of the company designed to help SMEs in various regions of the Kingdom.

Meeting with Branch Managers of Banks

To further promote the company’s different programmes and services, JLGC continued its marketing activities through meeting branch managers of banks working with the company in the different parts of the country. These meetings aim to increase awareness of the loan guarantee culture within these branches and discuss procedures and any difficulties arising in the process.

The 1st meeting targeted Jerash, Ajloun, and Kufranjeh where 12 branch managers were present, followed by a meeting in Aqaba with 20 managers and another meeting in the Wadi Mousa, Tafeleh and Maan areas with10 more branch managers. Mafraq also was on the marketing map where JLGC representatives met another 8 managers.

The marketing team plans to continue these meeting to cover all areas of the Kingdom.

Understanding of Guarantee for Universities’ students

JLGC began lecturing university students on the company’s line of work a few years ago in order to give the knowledge about loan guarantees to the future entrepreneurs, business men, bankers and decision makers of Jordan.

These lectures not only aim to promote the company’s programmes but also show the impact the loan guarantees might have on enhancing the financing of SMEs and eventually on the overall economy.

On November 30, 2005 JLGC gave some students of Yarmouk University in Irbid about the SME Loan Guarantee Programme. The 2 lectures were given to students in Amman Ahliyeh University on the 20th and the 28th of December 2005 showing the mission of JLGC and its main objective in helping to overcome one of the biggest problems facing SMEs which is the difficulty in obtaining the necessary financing.

First Exporters Meeting

JEDCO the Jordanian Enterprise Development Corporation organized a meeting on the shores of the Dead Sea during the period of 17th – 19th November 2005, attended in addition to JLGC by a number of business men and exporting companies and other organizations working to promote development of the national economy.

This Gathering aimed to put a futuristic vision and framework for a national strategy for the Jordanian Exports to work together with the overall strategy for economic development Jordan is implementing.

JEDCO presented its role in promoting Exports through opening new markets and encouraging export oriented investments and praised the JLGC’s Export Guarantee Programme for doing its own contribution in the promotion of Jordanian exports.

Micro and Small Project Seminar

JLGC participated in the conference organized by the Development and Employment Fund on the role the small and micro enterprises play in the breaking of the unemployment and poverty cycle. The conference was held during the period of 22nd – 23rd of November 2005 and evaluated the status of these businesses in Jordan ad the way to improve the environment in which the operate.

Representatives from JLGC gave an overview of the SME Loan Guarantee Programme at the company and its role in facilitating the necessary financing these enterprises need.

Irbid Chamber of Commerce Seminar

The Managing Director Mr. M. Said Hammami presented on October 18th 2005 the Jordanian experience in guaranteeing the risks of lending the small and medium businesses to 100 members of the Irbid Chamber of Commerce.

He also highlighted the challenges and future aspirations of JLGC in order to realize its mission and goals.

Signing Agreement with The Islamic Corporation for the Investment and Export Credit (ICIEC)

To develop new ways of cooperation with Arab counterparts, JLGC signed on October 2nd 2005, a reinsurance agreement with the Islamic Corporation for the Investment and Export Credit ICIEC member of the IDB, the Islamic Development Bank Group based in Jeddah, Saudi Arabia
This agreement will allow JLGC to reinsure its export guarantees with the ICIEC and increase the company's Credit Guarantee Programme potential.
On behalf of ICIEC Dr. Abdel-Rahman Taha, General Manager signed the agreement with Mr. Hammami.

Signing Agreement with The Jordan Upgrading and Modernization Programme (JUMP)

On the 8th of October, 2005 JLGC signed a memorandum of understanding with the Jordan Upgrading and Modernization Programme (JUMP)
JUMP is an independent national Programme managed by a Steering Committee headed by HE Minister of Industry and Trade and it involves equal representation from government and private sectors whose mission is To improve and sustain the competitiveness of Jordanian enterprises through building their managerial capabilities and productive capacities
Mr. Yarrub Quthah signed the MoU on behalf of JUMP with Mr.Hammami on behalf of JLGC.
Present at the ceremony was HE Mr. Sharif Elzu'bi Minister of Industry & Trade and his deputy, and HE Dr. Umayya Toukan Governor of the Central Bank of Jordan, JLGC's Chairman of the Board.
Various leaders of the Jordan business community, as well as CEOs from the Jordanian commercial banking sector also attended the event.

Signing Agreement with The Jordan Enterprise Development Corporation(JEDCO)

On the other hand JLGC signed an agreement with JEDCO the Jordan Enterprise Development Corporation whose mission in the first place to develop and increase Jordanian exports and open new markets for them and help encourage investments aiming toward exporting.
Through meetings and seminars and direct contact, JEDCO will help increase the Jordanian exporter's knowledge about JLGC's programmes and services particularly the Export Credit Guarantee Programme which covers the exporter's risk abroad.
Dr. Wael Al Akayleh Chief Executive Director of JEDCO signed the agreement with the Managing Director Mr. Mohammad S. Hammami on October 2nd 2005 at the offices of JLGC in Amman.

Bank of Jordan Seminar

As a request from the management of the Bank of Jordan, JLGC's related department heads presented a specialized lecture on August 14th 2005, about the company and its programmes and services, and the procedures and relative issues of the loan guarantee operation.
As a request from the management of the Bank of Jordan, JLGC's related department heads presented a specialized lecture on August 14th 2005, about the company and its programmes and services, and the procedures and relative issues of the loan guarantee operation.
The lecture was attended by a number of the Bank of Jordan employees.

Amman Chamber of Commerce Seminar

Managing Director Mr. M. Said Hammami presented the Jordanian experience in loan guarantees and issues related to guaranteeing the risks of financing SMEs.
The presentation was held on September 14th 2005, and was attended by 120 members of the chamber.
The future vision of JLGC and its role in the development of the SME sector in Jordan was presented, and discussions on how to overcome the difficulties and challenges in financing these SMEs that are facing the company in realizing its goals and accomplishing its mission.

EMPRETEC–JORDAN CLUB
Empretec-Jordan is a unique program aiming to promote sustainable SMEs and help promising entrepreneurs through its training workshops and technical support.

The program was initiated in 2002 from the offices of JLGC, through the United Nations Conference on Trade and Development UNCTAD, and is under supervision of the United Nations Development Program UNDP in association with the Jordanian Government represented by the Ministry of Planning and International Cooperation.

The Empretec-Jordan Club was established in August 2005 through the effort of graduates from these workshops in order to maintain cooperation between them and build a database to facilitate this network.

Mr. Ez El Deen Katakhda who was voted president of the club on December 18th 2005, said the membership in the club is restricted on Emprectos and Empretecas who attended the workshop and completed it successfully at least once.

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