$30M BOOST FOR MSMEs IN JORDAN
The European Bank for Reconstruction and Development (EBRD) is strengthening the resilience of the Jordanian economy by providing a loan of up to US$ 30 million to Cairo Amman Bank for on-lending to private businesses in the country, this as per an EBRD report by Nibal Zgheib.
The loan comes under the EBRD coronavirus Solidarity Package, established to meet the immediate short-term financing needs of existing clients.
Small businesses form a significant segment of the Jordanian economy and supporting them in these challenging times remains a priority for the EBRD.
Addressing the economic impact of the pandemic, the funding will be on-lent in short-term loans to private small and medium-sized enterprises (SMEs) and firms facing liquidity strains due to a decrease in their activities, turnover and/or profitability.
Cairo Amman Bank (CAB) is the fifth-largest bank in Jordan with total assets of US$ 4.6 billion as of 30 September 2020. While CAB focuses predominantly on retail operations, it is a universal bank offering a wide range of products and services including micro, SME and corporate lending.
The bank has been a longstanding partner of the EBRD since 2013, when a trade finance facility was signed. The coronavirus pandemic and its economic impact present an unprecedented challenge to the regions where the EBRD invests.
The Bank has rapidly stepped up its support with a response and recovery programme to help the 38 emerging economies where it invests.
The EBRD expects to dedicate the entirety of its activities to combating the economic impact of the crisis and stands ready to provide support worth €21 billion over the period 2020-21.
Since the start of its operations in Jordan in 2012, the EBRD has provided over €1.4 billion in 54 projects to the country’s economy. The Bank’s priority in Jordan is to support sustainable energy, finance private enterprises and promote infrastructure reform.