Maher Hasan Deputy Governor Central Bank of Jordan JLGC-SME Conference 2014 Amman, Jordan November...

Maher HasanDeputy Governor

Central Bank of Jordan

JLGC-SME Conference 2014Amman, Jordan November 24,25 , 2014

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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