Untying the red tape: Gov’t to develop unified public loan platform

By Mays Ibrahim Mustafa - Jul 30,2023 - Last updated at Jul 30,2023

AMMAN — According to experts, unifying the work of government lending funds is a step in the right direction to ensure the efficiency of the public loan process.

Minister of Social Development Wafa Bani Mustafa said that work is currently underway to develop a unified platform for all government lending funds, Al Mamlaka TV reported on Saturday.

The move aims to ensure that loans are directed towards feasible projects, in addition to preventing duplication and increasing the number of beneficiaries, Bani Mustafa said.

Economist Husam Ayesh agreed that a unified platform can help prioritise spending and prevent repeated projects or “failures”.

However, this requires setting clear standards and monitoring methods to ensure that the loans are invested in the right place, he told The Jordan Times.

It is essential to develop this platform under a framework that can guarantee transparency and honesty away from bureaucratic hurdles, he added.

“The goal shouldn’t be just reducing costs, although that is important; we need better results in the form of sustainable projects that help create jobs and reduce poverty levels,” Ayesh said.

Hamada Abu Nijmeh, a lawyer and an expert in legal affairs, noted that these funds generally share the same goal: To help build sustainable projects and create jobs.

However, the lack of coordination and the absence of unified standard operating procedures can result in wasted funds, which is why a unified platform is “important”, he told The Jordan Times.

“Approving a funding request should be preceded by a thorough evaluation of the project’s feasibility in addition to the applicant’s qualifications and abilities,” he added.

A sufficient level of expertise in the targeted field of investment as well as financial management capacities are both integral to the success of any project, Abu Nijmeh said.

He also suggested providing complementary services that support the funds’ goals, such as management and financial training.

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