EBRD provides $30 million to Cairo Amman Bank for on-lending to private businesses

AMMAN — The European Bank for Reconstruction and Development (EBRD) is strengthening the resilience of the Jordanian economy by providing a loan of up to $30 million to Cairo Amman Bank for on-lending to private businesses in the country. 

The loan comes under the EBRD coronavirus Solidarity Package, established to meet the immediate short-term financing needs of existing clients, according to an EBRD statement. 

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, according to the statement. 

Cairo Amman Bank (CAB) is the fifth-largest bank in Jordan with total assets of $4.6 billion as of September 30, 2020. While CAB focuses predominantly on retail operations, it is a universal bank offering a wide range of products and services including micro, SMEs and corporate lending, the statement said. 

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, said the statement.

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 euros over the period between 2020 and 2021, the statement said.

Since the start of its operations in Jordan in 2012, the EBRD has provided over 1.4 billion euros 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, the statement concluded.