News Column

Jordan MSME Framework

August 16, 2014

Business sector:Depository Credit Banks Public/Private: Private Environmental category: FI Target Board date: 17 Sept 2014 Status:Passed final review, Pending board approval PSD disclosed: 14 Aug 2014 Project Description : The EBRD is considering US$150 million (approx. JOD106 million) senior unsecured facility to Jordanian Partner Banks (PBs) for on-lending to eligible MSMEs in Jordan. The senior unsecured facilities will be made available in JOD, USD or EUR to PBs; however the on-lending to the local MSMEs will be in JOD. The JODs are sourced from the Central Bank of Jordan (CBJ) through a swap agreement. The framework will offer an optional loan guarantee scheme, including a first loss tranche, provided by the EBRD and a second loss guarantee provided by a local guarantee institution, Jordan Loan Guarantee Corporation (JLGC). In addition, the EBRD will be providing technical co-operation for capacity building to the Partner Banks. Transition Impact : Sources of Transition Impact: - Market Expansion: Jordanian MSMEs account for 95 per cent of active businesses in Jordan, providing 70 per cent of private sector total employment and generating around 40 per cent of GDP. Yet, access to finance remains an important impediment to MSMEs growth, with bank lending to MSMEs estimated at around 11 per cent of total lending. - Skills Transfer: Dedicated technical assistance will support Jordanian banks in building capacity in MSME lending. The Client : The Framework will be made available to all eligible banks in Jordan subject to EBRD s due diligence. It is expected that there will be at least five Partner Banks (PBs) under the Framework. The first two PBs proposed for approval under the Framework will be Bank Al Etihad and Cairo Amman Bank. EBRD Finance : Debt Project Cost : US$150 million / JOD106 million Environmental Impact : Categorised Financial Institutions. All PBs will be required to comply with the EBRD s Performance Requirements (PR) for FIs (specifically, PR2 Labour and Working Conditions and nine Financial Intermediaries) and adhere to the EBRD s Environmental and Social Exclusion and Referral Lists and submit Annual Environmental and Social Reports to the EBRD. Company Contact : Melis Ekmen Tabojer EBRD, Financial Institutions Tel: +44 20 7338 6769 Email: Business opportunities : For business opportunities or procurement, contact the client company. General enquiries : EBRD project enquiries not related to procurement: Tel: +44 20 7338 7168; Fax: +44 20 7338 7380 Email: Public Information Policy (PIP) : The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.

Project completion date : 2015-12-31 12:00:00


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Financier : European Bank for Reconstruction and Development (EBRD),

Financier address : European Bank for Reconstruction and Development (EBRD) One Exchange Square London EC2A 2JN United Kingdom Website :

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Source: TendersInfo (India)

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