maher hasan deputy governor central bank of jordan jlgc-sme conference 2014 amman, jordan november...
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Maher HasanDeputy Governor
Central Bank of Jordan
JLGC-SME Conference 2014Amman, Jordan November 24,25 , 2014
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Outline1. Importance of SMEs in the Jordanian Economy
2. Challenges Facing SMEs
3. CBJ’s Policy for enhancing Financial Inclusion
4. CBJ’s Programs Supporting SMEs
5. Expanding CBJ Regulatory Umbrella
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Constitute 95% of all the companies in Jordan
Create 70% of Job Opportunities
Account for 40% of GDP
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World Bank Loan ($70million)
Arab Fund Loan ($200 million)
CBJ Internal Window
EBRD Loans $ 150 million & Guarantee
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World Bank Loan
USD 70 million for 15 years with 5 years grace period ( CBJ to banks)
Interest Rate: LIBOR+1.8%( CBJ to banks)
12 banks participated including 2 Islamic banks
More than 4000 clients benefited from the loan ( 58% outside Amman )
Average interest rate on loans granted to SMEs is about 6%
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Arab Fund Loan
USD 50 million for 10 years with 3 years grace period ( CBJ to banks)
Interest Rate: 2.5% ( CBJ to banks)
12 banks participated including 1 Islamic bank
Will be disbursed to the banks very soon
USD 150 million non loans
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CBJ has an internal program directed to the industrial and tourism and renewable energy sectors. The program aims to provide medium-term financing to these sectors (including SMEs) at reasonable cost.
98 projects benefited from this program with a total amount that reached to JD 88 million as at 23/10/2014.
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Availability of Information: The first Credit Information Company is expected to be licensed by the end of 2014 which will help in enhancing access to finance especially for SMEs .
Credit Guarantees: In cooperation with the IFC, restructuring and procedural improvements of the JLGC is undergone in order to provide the necessary collaterals to obtain funds for SMEs.
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The CBJ has finalized drafting the Microfinance Bylaw and sent it to the Cabinet in June-2014
As a second phase the CBJ will study the feasibility and the possibility of regulating all non-banking financial institutions
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Thank you
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