JLGC and Bindar signing cooperation agreement
On the 24 of April 2013 JLGC signed an agreement with Bindar Trading and Investment Company. According to this agreement, the Jordan Loan Guarantee Corp. will guarantee loans granted to SMEs.
The agreement was signed at JLGC premises by Dr. Mohammed Al Ja'fari, the Director General of the Jordan Loan Guarantee Corp. , and Mr. Bassam Hammad , the General Manger of Bindar. Directors of core business departments of both corporations attended the signing ceremony.
Dr. Al Ja'fari indicated that JLGC is proceeding with the implementation of its strategic plan to expand its network comprising financial institutions and specialized lending institutions availing credit to SMEs and entrepreneurs to develop their business activities. Dr. Al J'afari also indicated that by the first quarter of 2013 the JLGC guaranteed (274) loans with a guaranteed value of JD 9 million.
Mr. Hammad , the General Manger of Bindar Trading and Investment , said that the signing of the agreement reflects the goals toward activating the role of Bindar to serve SMEs sector widely. He added that the ultimate mandate of the company is to alleviate poverty and unemployment in collaboration with the Jordan Loan Guarantee Corporation; with the overall vision for both parties being the advancement of national economy growth.
Arab Bank & JLGC lunch 4 specialized programs in SMEs
Jordan Loan Guarantee Corp. and the Arab Bank continued their collaboration and signed the second addendum of the loan Guarantee agreement; to launch the new four SME's specialized programs. The agreement was signed by JLGC Director General Dr. Mohammad Al Ja'afari and the Arab Bank Vice President, Country Manager of Jordan and Palestine, Mrs. Kholoud Al Saqqaf. Through this agreement JLGC guarantees the risk of financing SMEs loans granted by the Arab Bank.
The four programs are: "Auto- loan", "Renewed loan for pharmacies" and "renewed bonded loan" with a guarantee percentage of 70% per each. Whereas, the last program is the "Jordanian Exports Support loan" with a guarantee percentage of 90%.
The contribution of SMEs considered to be the backbone of the Jordanian Economy, as they represent 95% of Jordanian companies. The statistics indicate that productive, economical and profitable enterprises which lack access to finance are well served by the Arab Bank through its wide range of branches across the kingdom in coordination with the Jordan Loan Guarantee Corp.
JLGC is keen on continuing corporation with Arab Bank to provide guarantees aimed at serving the new four programs with finance reach to JD 100,000 and a maturity date of 5 years.
It is worth pointing out that the first addendum was signed in October 2012 and launched the first two programs, "Express Loan" and "Business Loan for SMEs ".
JLGC signed agreement with Capital Bank
An agreement has been signed between the Jordan loan Guarantee Corp. and Capital Bank on Tuesday 2ed April 2013 to guarantee the risks of financing SMEs loans granted by Capital Bank.
The agreement was signed by Dr. Mohammed Al Ja'fari, the Director General of the Jordan Loan Guarantee Corp. and Mr. Haitham Qamhyia , the General Manger of Capital Bank. In the presence of H.E. Eng. Basem Al Salem, chairman of the Board of Capital Bank and H.E.Eng. Ya'rub AlQudah, CEO of the Jordan Enterprise Development Corporation / JEDCO.
Mr. Qamhyia pointed out that the agreement reflects the leading role of the bank in financing and developing SMEs sector at the kingdom, which also contributing in advancing economic development, decreasing poverty and containing unemployment.
Dr. Mohammed Al Ja'fari, the Director General of the Jordan Loan Guarantee Corp. said that signing the agreement came in line with the company's mandate to direct its guarantees for SMEs to enable them to obtain the required financing to enhance their business abilities based on the feasibility and cash flow of those projects.
Through this agreement, JLGC aims to expand its services and to enable SMEs to access the necessary financing they may require. Noted that the company provided guarantees for (833) SME loans during 2012 with a guaranteed value of JD 17.6 million, in comparison with (516) loans with a guaranteed value of JD 12 million in 2011.
JLGC expects that the guaranteed value of loans granted to SMEs during this year will reach JD (25) million due to the increasing demand of SME owners and to the expected support by local banks.
Mr. Mohannad Al Rashdan / Assistant Director General for Technical and Operational group and Mr. Jamal Al Ja'afari /Loan guarantee dept. manager at JLGC attended the signing ceremony, in addition to Mr. Yasser Klieb / Assistant General Manager- Head of Corporate Banking, Mr. Naser Al Ghzawi / SMEs dept. Manager and Mr. Khaldoun Rababb'a / Marketing and Corporate communication manager on behalf of Capital Bank.
Agreement signed with Ejara Leasing Company
On Thursday, 6 December 2012, at the JLGC Headquarters, a financing guarantee agreement was signed between Jordan Loan Guarantee Corporation, and Ejara Leasing Company (a member of Jordan Kuwait Bank Group), covering the leasing operations granted by Ejara.
The agreement was signed by Dr. Mohammed Al-Jafari, JLGC Director General, and Mr. Arafat Odetallah, Deputy General Manager of Ejara.
The signing of this agreement is a continuation of JLGC efforts to guarantee various forms of financing offered to different small and medium economic projects; including leasing which is considered to be one of the widely used methods of financing of long term assets. It enhances business abilities for owning and upgrading their machinery, equipment and production lines.
This agreement is expected to increase the volume of credit facilities granted by Ejara Leasing Company to productive economic projects, based on the feasibility and cash flow of those projects.
Ejara Leasing Company is a private shareholding company with a total capital of JD 20 million. The company is a member of Jordan Kuwait Bank Group. It began its operations in October 2011, to finance various economic sectors through capital lease.
The Agreement covers Ejara short and medium term leasing operations up to eight years maturity with a funding ceiling of up to JD 550 thousands.
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.
The Launching of 2 SME Loan Guarantee Programs with the Arab Bank
Through joint efforts the Jordan Loan Guarantee Corporation and the Arab Bank have launched two loan programs, the "Express Loan" and the "Business Loan" for SMEs.
These loan guarantee programs will open up new prospects for the bank's customers from the owners of small and medium-sized enterprises wishing to obtain the necessary financing to expand and revitalize their business, but don't have the necessary collaterals.
The idea behind these programs is to be able to issue the guarantees necessary for the bank to facilitate the financing for Jordanian businesses, under the terms and conditions the Bank set for the category of small and medium sized enterprises.
The two programs were launched at the main administration building of the Arab Bank in Shmeisani, by the signing of the agreement sponsored by the senior management of the Jordan Loan Guarantee Corporation represented by the Director General, Dr. Mohammed Al-Jafari , and Arab Bank representative Executive Vice President, Country Manager of Jordan and Palestine, Mrs. Kholoud Saqqaf,
Dr. Jafari said that the signing of this agreement is the result of a joint effort of the company and the bank's management, and that JLGC is keen on continuing cooperation with banks and financial institutions to develop new products aimed at serving and supporting the owners of small and medium enterprises, and facilitating the funding necessary for the development of their businesses.
Mrs. Saqqaf expressed her contentment to sign this agreement, and noted that it's an important step in the development of the SME sector in the Kingdom. She added that the new programs came in line with the Royal directives to support the national economy, and a continuation of the Arab Bank's approach to meet the needs and aspirations of its clients.
Present at the signing of the agreement was Mr. Mohannad Rashdan JLGC's Assistant Director General, and Mr. Jamal Jafari Manager of the Loan Guarantee Department, and Ms. Lina Nsour Head of the Loan Guarantee Section, and from the Arab Bank, Mr. Alaa Ashi Head of the Small Business Facilities, and Mr. Raed Yamin Head of the Small Business Credit Unit, and a number of executives from the bank and the company.
JLGC signs an agreement for a SMEs loan guarantee fund.
Director General of the Jordan Loan Guarantee Corporation (JLGC) Dr. Mohammad Al Jafari signed an agreement on Wednesday 22nd August 2012, at the Ministry of Planning and International Cooperation, to provide entrepreneurs and owners of small and medium sized enterprises (SMEs) with guarantees when they apply for financing from the Development and Employment Fund (DEF).
According to the agreement, co-signed by H.E. Minister of Planning and International Cooperation Dr. Jafar Hassan, and Development and Employment Fund (DEF) Director General Eng. Omar Al Omari, the ministry will allocate JD1 million for this purpose. The funds will be deposited at the JLGC. The ministry will later raise the amount to JD1.25 million.
Dr. Hassan said the fund seeks to increase productivity and enhance development in the country, particularly in poor areas.
The DEF will offer medium and long term financing to feasible enterprises, while the JLGC will guarantee up to 70 per cent of each loan, according to Hassan, who indicated that the majority of SMEs face difficulties in securing credit due to their inability to meet guarantee requirements.
According to official figures, small and medium sized projects receive less than 10 per cent of all credit facilities extended by financial institutions.
The contribution of SMEs to gross domestic product is around 40 per cent, and they account for nearly 70 per cent of created job opportunities.
Around 99 per cent of business establishments in the Kingdom are SMEs, according to the figures.
Jordanian Exporters Iftar
On the occasion of the holy month of Ramadan, and in honor of a number of Jordanian Exporters, the Jordan Loan Guarantee Corporation (JLGC) with the support of the Jordan Enterprise Development Corporation (JEDCO) organized an Iftar on Wednesday, 8 August 2012 (the twentieth of Ramadan) in the Kempinski Hotel - Amman, to acquaint the Jordanian Exporters with the Export Credit Guarantee Programme, run by (JLGC).
The Export Credit Guarantee Programme is designed to provide guarantees for the Jordanian exports against commercial and political risks of non-payment by foreign importers or local buyers for the prices of their exports or domestic sales. The guarantee covers up to 90% of the value of the shipment.
The company offers its service to encourage Jordanian Exporters to reach new global markets, following an inquiry about the risks of these markets and the risk ratings of overseas buyers. This guarantee also covers exports made through open accounts in favor of the importers, which still constitute a significant portion of Jordan's national exports. These kinds of exports face higher risk, compared with what is exported through banks' letters of credit.
The Export Credit Guarantees also help Jordanian exporters to obtain better access to finance exports covered by the company.
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.
Ordinary General Assembly meeting
“Business Financing Programme” Agreement signed with the Housing Bank
A loan guarantee agreement was signed between the Jordan Loan Guarantee Corporation and the Housing Bank, to guarantee the risks of the loans granted by the Housing Bank under the new “Business Financing Programme”.
The agreement was signed by Dr. Mohamed al-Jafari, the Director General of the Jordan Loan Guarantee Corporation, & Mr. Omar Malhas Director General of the Housing Bank.
The signing of this agreement highlights the importance of developing financing opportunities for small and medium sized enterprises which spread throughout the kingdom and constitute the bulk of the economic community by nearly 95% of overall economic projects, and can reach approximately 98% outside the capital, Amman.
The experience of the Jordan Loan Guarantee Corporation with the Housing Bank reflects the integrated objectives of both parties, and company statistics show the expansion of the bank's services to include productive and income-generating economic projects, which have difficulty in providing traditional collaterals where the bank was able to provide it’s services to this group under the umbrella of the loan guarantee scheme.
Dr. Mohamed al-Jafaria Director General of the Jordan Loan Guarantee Corporation
The Board Directors of the Jordan Loan Guarantee Corporation, appointed H.E. Dr. Mohamed al-Jafari as the Director General of the Jordan Loan Guarantee Corporation starting 3rd July, 2011, as a successor to H.E. Dr. Jamal Salah.
Dr. Mohammed al-Ja’fari holds a PhD in Finance from the Manchester Business School, and a Master's degree in Economics and Statistics from the University of Jordan, and a B.A. in Economics from Yarmouk University.
He has held the position of Director General of the Deposit Insurance Corporation since the beginning of 2004. He also worked as Commissioner of Finance & Administration at the Aqaba Special Economic Zone Authority during the period 2002-2003, and also held several positions in the Central Bank of Jordan during the period 1986-2002.
A cooperation agreement between JLGC & Tamkeen Leasing Company
A cooperation agreement was signed at the JLGC offices in Amman on Tuesday 31 May 2011, between JLGC & Tamkeen Leasing Company to guarantee their financial leasing operations. The agreement was signed by JLGC’s Director General H.E. Dr. Jamal Salah and Tamkeen’s Director General, Mr. Jamal Fariz.
Tamkeen leasing company is the latest addition to INVESTMENT BANK Group, established to meet the growing needs of financial leasing services in the Jordanian market & launched its operations since the first quarter of 2011.
Tamkeen offers a full set of operational financial leasing structured to comply with the client’s activities and financing requirements, in addition to provide financial leasing services that comply with Al Sharia Islamic law, addressed to all economic sectors (individuals, SMEs and large companies).
Tamkeen plans to raise the level of interest in the services provided to targeted markets to meet their financing needs through spreading the concept of leasing and its economic & financial benefits.
This agreement will contribute to increase the size of credit facilities granted by Tamkeen, and enable financial leasing of productive projects in the economy on the bases of their feasibility and cash flows.
Financial leasing which is considered to be a highly effective funding tool, very popular in developed countries to finance capital assets associated with the operational productivity support, and that contribute to the development and of various economic sectors.
JLGC continues to adapt its guarantees to facilitate the different types of financing for economic projects in order including the guarantee of the risks for this type of financing (leasing) leading to the acquisition, which would increase the degree of dependence on the feasibility of financing such economic projects instead of relying on the availability of traditional collaterals.
Re-circulation of the company's shares on the Amman Stock Exchange
Upon the decision of the Board of Directors of Jordan Loan Guarantee at its meeting held on 01.03.2011 the Board decided to cancel the merger between the Jordan Loan Guarantee Corporation (JLGC) and the Jordan Mortgage Refinance Company (JMRC) because of the existence of legal barriers that prevent the implementation of the process of effective merger of the two companies.
The Amman Stock Exchange re-circulated the shares of the two companies for trading starting 06.03.2011.
1- JLGC letter to the Jordan Securities Commission
2- JLGC letter to the Amman Stock Exchange
3- Amman Stock Exchange Letter
17th Annual General Assembly Meeting of the Jordan Loan Guarantee Corporation
The Regular 17th Annual General Assembly Meeting of the Jordan Loan Guarantee Corporation will be held in the Central Bank
of Jordan at 12:00 Noon on Tuesday 22/3/2011 to discuss matters on the agenda.
Agreement Signed with the Al Ahli Leasing Company
On Sunday, 17 October 2010, at the JLGC headquarters, a working agreement was signed between the Jordan Loan Guarantee Corporation & Ahli Leasing Company, under which the risks of leases offered by the Ahli Company will be guaranteed by JLGC.
The agreement was signed by Director General of the Jordan Loan Guarantee Corporation, Dr. Jamal Salah, and Mr. Nibal Freihat, General Manager of the Ahli Leasing Company.
The signing of this agreement is a continuation of the JLGC efforts to guarantee the risk of various forms of financing offered to the different economic projects, including leasing which is considered to be one of the best ways of funding used in the world's developed countries to finance capital assets associated with the operational productivity, support, and that contribute to the development and support of various economic sectors.
This agreement will contribute to increase the size of credit facilities granted by Al Ahli Leasing Company to productive economic projects, based on the feasibility and cash flow of projects through financing various assets.
Al Ahli Leasing Company is a private shareholding company registered with a capital of JD 20 million owned by the Ahli Bank. The company began its work in the banking market of Jordan since the beginning of 2010 to meet the needs for leasing to various economic sectors, to achieve its development and increase the efficiency and that of the Jordanian economy.
The Jordan Loan Guarantee Corporation continues to adapt to the new markets of the financing institutions to finance the different economic projects and open the doors to guarantee the risks of this type of financing, which leads to the acquisition. The JLGC guarantee increase the degree of dependence on the feasibility of the financed projects, instead of relying on the availability of traditional collaterals to qualify for adequate financing.
A World Bank Delegation visits JLGC
Under a study conducted by the World Bank on the financing of small and medium size enterprises, a World Bank delegation visited the offices of the Jordan Loan Guarantee Corporation to examine the Jordanian loan guarantee experience, which is the only company of its kind operating in Jordan. JLGC’s primary objective is to facilitate the financing for small and medium enterprises, through banks and other financing institutions.
The aim of this study by the World Bank is finding the best ways to support these small and medium-sized projects, which are considered the main driver of economic development in all countries of the world. This study includes all countries in the Middle East and North Africa.
Facilitating the financing of SMEs through loan guarantee mechanisms is considered an integral part of the Financial aspect of the World Bank study. Other aspects include the legislation and the role of the government relating to the small and medium enterprises.
Autumn 2010 Prague Club meeting
His Excellency Dr. Jamal Salah the Director General of the Jordan Loan Guarantee Corporation attended the autumn 2010 Prague Club meeting which was held in Zagreb, Croatia during the period of 26-29/9/2010.
The Prague Club is an information exchange network for new and maturing insurers of export credit and investment. It was established to support members to develop their export credit and investment insurance schemes and facilities. It provides this support by hosting technical discussions at two yearly meetings, as well as facilitating ad-hoc information exchanges. The Prague Club currently has 33 members from across the globe including JLGC.
During the meeting, Dr. Jamal presented a paper entitled “Selling Credit Insurance after the Crises” which represented the challenges of the latest financial crises on the credit insurance industry throughout the world and in Jordan.
Second Annual Meeting of the Aman Union in Tunis
Dr. Jamal Salah, Director General of JLGC accompanied by Mr. Zaid Al Kayed Manager of the Export Credit Guarantee Department attended the second annual meeting of the Aman Union in the city of Tunisia during the period between 23rd - 24th Nov.2010 and with the participation of export guarantee institutions working in the Arab and Muslim countries.
During the two day meetings, many topics of importance were discussed concerning collection, the repercussions of the Basel 3 and building an information base for members of the Union.
The meetings were opened under the patronage of the Tunisian Minister of Finance, and welcoming speeches of Mr. Fahad Rashed Al Ibrahim General Manager of Daman in Kuwait, Mr. Abdel Rahman Taha, Executive Director of ICIEC in Saudi Arabia, and Mr. Habib Daldoul General Manager of "COTUNACE" in Tunis.
The importance of this annual meeting comes from the benefits to the participants from sharing in the experiences of members in the field of export credit and networking between them.
Suspension of Trading JLGC shares in the Amman Stock Exchange
Upon the decision of the Jordan Loan Guarantee Corporation's Board of Directors in their meeting held on 01.07.2010, the Amman Stock Exchange suspended trading in shares of the company for an indefinite period, to enable the board to study the proposed bases for implementing the Council of Ministers Resolution No. 438 dated 26 / 1 / 2010 on the merging of the Jordan Loan Guarantee Corporation (JLGC) and the Jordan Mortgage Refinance Company (JMRC).
1- JLGC letter to the Jordan Securities Commision (arabic)
2- JMRC letter to the Jordan Securities Commision (arabic)
3- Amman Stock Exchange letter (arabic)
Annual Conference of the Credit Alliance in Paris
Following the invitation of the French company COFACE, Director General Dr. Jamal Salah attended the annual conference of the Credit Alliance in Paris during the period 18-19/1/2010, where the latest world developments in the Credit Guarantee industry were discussed. JLGC is a member in the Credit Alliance, sponsored by COFACE.
And since the Jordan Loan Guarantee re-insures its Export Credit Guarantees with the COFACE some outstanding issues between the two companies were discussed.
Visits to “Kafalat” Guarantee Company in Beirut & Oseo and Socama Companies in Paris
Arranged by the European Union and the Jordan Enterprise Development Corporation JEDCO, a delegation from the Jordan Loan Guarantee Corporation, headed by the Director General Dr. Jamal Salah visited the Lebanese Loan guarantee company “Kafalat” in Beirut on 22 and 23/2/2010, and two other loan guarantee companies in France, Socama and Oseo during the period 24-26/2/2010.
The JLGC delegation was briefed on the mechanisms used by these companies in the process of granting loan guarantees, and the approach of delegation of authority to participating banks for certain loan purposes and within set ceilings.
These visits came in preparation to launch the loan guarantee scheme within the Services Sector Modernization Programme to be managed under the JLGC umbrella and under the supervision of Jordan Enterprise Development Corporation JEDCO, within the grant from the European Union for The Service Sector Modernization Program in Jordan
Conference of the U.S. Agency for International Development in Cairo
Assistant Director-General for Operations and Technical Affairs Mr. Mohannad Al-Rashdan attended a Conference on the Global Engagement on Access to Finance held by the Agency for International Development USAID in Cairo during the period 2,3 / 2 / 2010.
The conference discussed President Obama's plan to U.S. aid aimed at supporting small and medium enterprises. The conference was attended by representatives of countries from the Middle East, Africa, South and Central and East Asia,.
Arab European Cooperation Conference in Damascus
Mr. Jamal Al-Jaafari Manager of the Loan Guarantee Department, accompanied by, Head of SMEs Loan Guarantee section Mr. Rami Alsamardli attended the first session of the Conference of Arab-European Cooperation in support of small and medium enterprises during the period 20-21/2/2010 in the Syrian Arab Republic.
The Conference was conducted by the Arab Organization for Industrial Development and Mining in collaboration with the Syrian Business & Enterprise Center for the purpose of strengthening cooperation and partnership between Arab and European countries and to achieve maximum benefit from the funds and programs launched by the two regions for the rehabilitation and development of small and medium enterprises and increase their competitiveness and promote exports in particular with the repercussions of the global financial crisis.
Seminar on Export Credit at the Industrial Estates Corporation
H.E. Eng. Amer Al-Majali, Director General of Jordan Industrial Estates Corporation, sponsored a seminar held by the Jordan Loan Guarantee Corporation to introduce (the Jordanian exports credit guarantee scheme). The seminar was held at 11:00 am, on Tuesday October 20th 2009, at the King Abdullah II Industrial Park in Sahab.
The seminar was attended by the Vice President of Jordanian Investors Association and a number of industrial investors and those interested in the field of export credit.
Majali said that the issue of national export development has received widespread attention in recent years and took major concern of all economic and investment policies because of its great importance to the development of the national economy.
Assistant Director General for Technical Affairs Mr. Mohannad Al-Rashdan said that the Jordan Loan Guarantee Corporation has been offering loan guarantees since its establishment. The development of the Jordanian System to guarantee export and domestic credit was set to help Jordanian producers increase their sales in the domestic and external markets.
Dr. Abdullah Hylooz, export credit guarantee advisor, emphasized that any industrial company seeks to market their products in both local and foreign markets. On the other
hand the importers and local merchants seek to obtain goods and services from anywhere in the world with the best conditions. This has become possible in the light of freedom and ease of international trade, which increased competition among exporters of the same commodity from around the world.
Dr. Hylooz added that the Jordanian exporters with the help of the JLGC guarantees, can increase exports to their current markets and enter new ones by offering easier payment conditions, without insisting on the opening of traditional LCs. In addition exporters are able to get bank credit for the value of their guaranteed exports as well as their local sales from commercial banks, under appropriate conditions.
Mr. Zaid Al-Kayed, Head of the Export Credit Guarantee Department at JLGC, showed that the total value of exports covered by the JLGC export credit guarantee has increased to $ 500 million, and that there are nearly 28 companies who applied for credit guarantee policies on exports, and added that JLGC has processed 180 policies for both exports and domestic credit guarantees. He noted that industrial companies have moved from traditional bank LCs which was followed in the past, towards the export credit system in view of its effectiveness and protection.
Forum: Small and Medium Enterprises Present and Future Strategic
Upon the invitation of the Union of Arab Banks, H.E Dr. Jamal Salah,
Director General of the Jordan Loan Guarantee Corp. participated in
the activities of a forum on small and medium-sized Enterprises
entitled: “present and future strategic planning, which was held in
Alexandria, Egypt during the 16-17 of July 2009.
Dr. Jamal presided over a discussion meeting entitled:
“Role & Initiatives of banks, financial institutions, and
Investment Guarantee Institutions for financing small and medium
Several sources of financing for SMEs are available, including
specialized lending programs, in addition to commercial banks, which
has recently been interested in this kind of financing, where many
of them created specialized departments for the financing of small
and medium enterprises.
The philosophy of loan guarantee programmes is to encourage
commercial banks to provide the funding required to establish and
expand small businesses, depending on the feasibility of these
projects and the soundness of cash flows rather than to provide the
traditional collaterals required by conventional banks normally.
Governments strive to establish loan guarantee companies and
institutions to provide the required guarantees to facilitate the
financing of SMEs from the banking sector and other financing
institutions, based on the borrower's credit rating and ability to
• Methods of financing SMEs.
• Commercial banks procedures and requirements of financing SMEs
• Reasons for reluctance of commercial banks in financing SMEs.
• Importance of Credit Bureaus and Loan Guarantee Companies to SMEs.
• Mr. Ali Shaker, Chairman of the Board of
Agricultural Credit Bank, Egypt.
• Mr. Basil El Hainy, Managing Director, Cairo Bank.
• Mr. Mohamed Abdel-Hamid, Chairman, Credit Risk
Mr. Hamdi Azzam, General Manager of SME Unit,
National Bank of Egypt, Egypt
assigned for the Export Credit Guarantee Programme
Dr. Abdullah Hylooz commenced his work as an advisor to the Jordan
Loan Guarantee Corporation (JLGC).
As Dr. Hylooz has a long experience extended to 25 years in the
field of export credit guarantee, he is supposed to enhance and
develop the Export Credit Guarantee Scheme at JLGC which aims
mainly at increasing Jordanian exports by providing insurance
coverage against commercial and non-commercial risks which is in
case of its occurrence the Jordanian exporter does not receive the
value of his exports from the foreign importer, due to non payment
by the importer or due to risks that are beyond importer's control
as currency transfer risk.
Dr. Hylooz is one of few Arab experts in the field of Investment and
Export Credit Guarantee, as he worked in the Arab Investment and
Export Credit Guarantee Corporation since its establishment in
Kuwait in 1975.
Dr. Jamal Salah the director general and the employees welcomed Dr.
Hylooz hopping him success in his new task.
Guarantee and Financing of Exports and Investments in Jordan” Forum
Under the patronage of H.E. the Minister of Industry and Trade, and
in cooperation with the Arab Investment and Export Credit Guarantee
Corporation (DHAMAN), the Islamic Corporation for the Insurance of
Investments and Export Credit (ICIEC), and the Jordan Enterprise
Development Corporation (JEDCO), the Jordan Loan Guarantee
Corporation organized on Sunday, 31 May 2009 a forum titled “the
Guarantee and Financing of exports and investment in Jordan”. This
Forum was in the context of strengthening existing relations between
(JLGC) and both (DHAMAN)& (ICIEC), which include reinsurance, joint
marketing and commercial information exchange and debt collection
and management training.
During the forum, exporters, investors and Jordanian banks were
introduced to the Export Credit Guarantee Mechanisms and to
Investment Insurance and ways to take advantage of services offered
by the organizers of the forum. Mechanisms of joint cooperation
between (JLGC) on the one hand, and (DHAMAN) & (ICIEC) were
explained, which play an important role in supporting the National
Arab and Islamic Guarantee Organizations.
This forum aimed to maximize the benefit of the Hashemite Kingdom of
Jordan, from the guarantee protection services offered to exporters,
investors and financiers in Jordan, which would have a positive
effect in increasing Jordan's exports and strengthening its position
in the Arab and international markets, and maximizing the role of
Jordanian banks in providing the necessary funding in the context of
guarantee coverage to keep pace with the evolution and expansion of
It is worth mentioning that Jordan is a member of the Arab and
Islamic Corporations; (DHAMAN) & (ICIEC), who are both strong and
credible financial institutions. The Arab Foundation for the
Insurance of Investment and Export Credit (DHAMAN) was rated
AA-(stable) by Standard & Poor's, and the Islamic Corporation for
the Insurance of Investments and Export Credit (ICIEC) obtained a (Aa
3) degree classification by Moody’s.
Club / Bern Union Spring 2008 Meetings
Dead Sea -
The Jordan Loan Guarantee Corporation hosted last week during the period 18-22 May 2008 at the Kempinski Hotel in the Dead Sea area the Prague Club / Berne Union spring meeting, which included the world’s major Export Credit Guarantee agencies. The Islamic Corporation for the Insurance of Investment and Export Credit, which is owned by the Islamic Development Bank – Jeddah, was the co-host for the meetings.
Major Export Credit agencies from 30 Arab and foreign countries in Europe, the Middle East, Africa and Southeast Asia in addition to Jordan, which hosted the meeting participated in the conference. During the Prague Club semi-annual meetings, developments in the Export Credit Guarantee Industry are discussed, and experiences among the participants are exchanged.
The opening ceremony was held under the patronage of Mr. Nader Al Dahabi and Dr. Umayya Toukan, Governor of Central Bank of Jordan represented him. Dr. Toukan welcomed the delegates participating in the conference. He presented Jordan’s overall perception of the challenges facing the world over the past decade, pointing out that emerging markets, consisting of China, India and countries of the Gulf Cooperation Council are currently considered world leaders in economic growth while the first world markets are witnessing notable setbacks.
Dr. Toukan also reviewed the achievements of the Jordanian economy, which managed to achieve growth rates of around 6% in past years. He also pointed out that the volume of foreign direct investment during 2007 has reached a new record of more than 3 billion dollars.
Dr. Toukan noted that the monetary policy in the Kingdom had always intended to control any inflationary pressures through balanced performance of banking facilities and balance of payments. And in spite of the fact that the current account deficit in the balance of payments remains a major challenge, it is also a fact that it has been funded through the capital account, as demonstrated by the high foreign exchange reserves of the Kingdom, which amount to more than the value of Jordan’s imports for four months.
Dr. Toukan also referred to a recent report of the International Monetary Fund on the strong performance of the Jordanian national economy in light of a difficult external environment, which oblige us to continue to pursue disciplined fiscal and monetary policies.
Engineer Yarub Al Qudah Executive Director of the Jordan Enterprise Development Corporation also spoke in the opening ceremony and explained the leading role JEDCO played since its establishment in 1972 in support of the Jordanian export activities, which had a great impact in the delivery of Jordanian goods and services to global markets.
Eng. Qudah emphasized the remarkable growth in the Jordanian economy and business and SMEs and the importance of facilitating the funding necessary for them in order to help create new job opportunities and boost the national exports which rose to 5.7 billion U.S. dollars in 2007. He stressed the importance of taking advantage of the agreements signed between Jordan and various countries including the United States and the European Union which opens promising markets for Jordanian exporters.
He also mentioned that the JEDCO is currently in the final stages to set up two funds worth 27 million Euros to support the funding of various economic projects in Jordan.
Mr. M. Said Hammami, Managing Director of the Jordan Loan Guarantee Corporation also welcomed guests, headed by Mr. Konno Chairman and CEO, of the Japanese Export Credit agency NEXI which is also the world’s largest, who came specifically to Jordan to attend the conference.
Mr. Hammami reviewed the achievements of JLGC during the past ten years including the company's operations in the area of Export Credit Guarantees, which rose in the past 5 years by more than 30% per annum to reach the value 110 million dollars in guaranteed policies.
He also noted that cooperation with the Prague Club / Berne Union had begun in 2000 and that this cooperation has led to increasing momentum of the company's operations in this area, through transfer of knowledge obtained by the company, which is the main reason for establishing the Berne Union.
At the end of the opening ceremony, Dr Toukan met with Mr. Konno, Berne Union’s President and Mrs. Kimberly Wiehl Secretary General of the Prague Club/Berne Union and discussed cooperation between the Union and the Kingdom.
Mr. Konno and Ms. Wiehl commended the performance of the national economy of Jordan and expressed their happiness to visit the Kingdom.
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
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.
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
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.
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.
this cooperation with BLOM the number of participating banks in this
guarantee programme becomes 17 banks.
Transfer EJADA fund to JLGC
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
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.
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
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
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
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.
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.
marketing team plans to continue these meeting to cover all areas of
Understanding of Guarantee for Universities’ students
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.
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.
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
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.
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
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
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
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
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
This agreement will allow JLGC to reinsure its export guarantees
with the ICIEC and increase the company's Credit Guarantee Programme
On behalf of ICIEC Dr. Abdel-Rahman Taha, General Manager signed the
agreement with Mr. Hammami.
Signing Agreement with The Jordan Upgrading and Modernization
On the 8th of October, 2005 JLGC signed a memorandum of
understanding with the Jordan Upgrading and Modernization Programme
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
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
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
Empretec-Jordan is a unique program aiming to promote sustainable
SMEs and help promising entrepreneurs through its training workshops
and technical support.
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.
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
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.