The Compass – The Central Bank of Jordan, in cooperation with the Ministry of Planning and International Cooperation, launched a facilitating program for financing small companies and micro-enterprises, by allocating an amount of 21 million dinars to lend to licensed microfinance companies, which in turn will lend to companies and micro and small enterprises.

And according to a statement by the Central Bank, today, Monday, the government represented by the Ministry of Planning and International Cooperation and the Ministry of Finance will support the program by bearing part of the cost of financing for the beneficiaries of this program, which comes within the framework of the government and the Central Bank of Jordan’s keenness to support companies and micro and small projects and mitigate the negative effects of the pandemic. The Corona virus is upon them because these companies and projects play a vital role in supporting economic growth, alleviating unemployment and fighting poverty.

The program aims to provide financing for micro and small companies and home micro-enterprises through microfinance companies licensed by the Central Bank of Jordan, according to easy deadlines and costs, in order to help these companies and projects continue their business and cover their operating and capital expenses, especially with the economic challenges associated with the crisis. Corona during the current stage.

According to the statement, the first installment of the loan, worth approximately nine million dinars, at the beginning of this month, was transferred to the four microfinance companies participating in the program, namely: Al-Ahlia Microfinance, the National Bank for Microfinance, the Women’s Fund for Microfinance, and FINCA Microfinance. From the program, which are companies, micro and small projects, professionals, craftsmen and self-employed individuals, apply for financing to these four companies whose branches are spread in all governorates of the Kingdom.

The microfinance companies participating in the program will lend the program beneficiaries at an actual cost (interest rates and any other commissions) not more than 9 percent decreasing, provided that the borrower bears an actual cost of a maximum of 5 percent decreasing, and the government bears the rest of the cost, and the company will The Jordan Loan Guarantee Corporation is guaranteed by the finances granted within the program, with a guarantee rate of 85 percent.

The program will cover loans/financing granted to finance productive projects exclusively with the aim of covering their operating expenses, with a financing ceiling of a maximum of 25,000 dinars for companies and micro and small projects, while the loans/finances provided to professionals, craftsmen and self-employed individuals are subject to a financing ceiling of a maximum of 5,000 dinars. ?

(Petra)