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    CBJ, Planning Ministry launch JD21m soft financing programme for micro businesses

    December 21, 2021
    banking

    AMMAN — The Central Bank of Jordan (CBJ), in cooperation with the Ministry of Planning and International Cooperation, on Monday launched a JD21 million soft financing scheme targeting micro enterprises.

    The amount will be delivered to microfinance companies which will, in turn, re-loan the funds to small and micro businesses as well as self-employed individuals, the Jordan News Agency, Petra, reported.

    Under this programme, which targets productive projects exclusively, microenterprises are granted loans/facilities to cover operating expenses, working capital and/or capital expenditures, with a maximum financing ceiling of JD25,000, according to a CBJ statement.

    On the other hand, loans/financings provided to professionals, craftspersons and self-employed individuals are subject to a financing ceiling of JD5,000.

    Microfinancers participating in the programme will lend to eligible beneficiaries at an actual cost (interest rates and any other commissions) not exceeding 9 per cent (reducing), provided that the borrower bears an actual cost that does not exceed 5 per cent (reducing) while the government bears the remainder of the cost.

    The Jordan Loan Guarantee Corporation will also guarantee the facilities granted under the programme with a guarantee rate of 85 per cent.

    The programme aims to provide soft financing for micro and small-sized businesses and home-based micro-enterprises through micro financers licensed by the CBJ, to help them sustain their businesses and cover their operating and capital expenses.

    The CBJ said the scheme recognises the microfinance sector’s and microenterprises’ role in propelling economic growth and combating unemployment and poverty.

    Earlier this month, the first installment of the tranche, approximately JD9 million, has already been transferred to four companies: The Ahli Microfinance Company, the National Microfinance Bank, the Microfund for Women, and FINCA Microfinance Company.

    jordantimes

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