Programme launched to support Jordanian businesses abroad

AMMAN —The Central Bank /of Jordan (CBJ) and the Jordan Loan Guarantee Corporation (JLGC) on Monday signed a $100-million agreement to create a programme that seeks to facilitate the issuance of bank-guarantees in support of contractors doing business outside the Kingdom.

The agreement covers projects within the construction, engineering, consultancy and IT sectors, the Jordan News Agency, Petra, reported.

It was signed by CBJ Governor Ziad Fariz and JLGC CEO Mohammad Jaafari.

Fariz said the construction sector is multifaceted in that its inputs and outputs connect to various economic sectors tied to construction industries.

He affirmed the importance of the bank guarantee-issuance programme in mitigating prospective financial burdens that may affect the sector’s competitiveness.

Fariz added that bank-issued guarantee letters that contractors and service providers present when exporting their services help facilitate their tasks, especially in the contracting sector, which provides jobs and increases demand within the local market leading to growth.

He underscored that providing allocations to the programme seeks to complement the CBJ’s efforts in supporting productive sectors and stimulating economic growth.

Fariz highlighted that the CBJ has provided several credit lines at competitive interest rates to the industry, tourism, IT, consultancy and services sectors.

He said that the bank’s initiative has allowed the JLGC to double the volume of business within the export insurance programme, which is complementary to the credit facilities programme.

Jaafari said that the new programme will be implemented through banks that operate within the Kingdom.

He added that as part of the initiative the JLGC will share up to 50 per cent of the risks of issuing guarantees to Jordanian contractors working abroad.