Jordan boosts SMEs: 2,391 projects backed in 2023

Central Bank of Jordan CBJ
(File photo: Jordan News)
AMMAN — The Jordan Loan Guarantee Corporation (JLGC) increased its support for the small and medium enterprise (SME) sector in 2023, guaranteeing roughly 2,391 SME projects with a collective value of JD312 million.اضافة اعلان

JLGC gave a detailed breakdown, stating that the organization extended guarantees to 256 firms last year, pouring JD18 million into the expanding sector. This strategic approach aims to strengthen the Jordanian economy by encouraging new ventures, Jordan News Agency, Petra reported.

Despite continuous efforts to alleviate the economic impact of the COVID-19 epidemic, JLGC continued to provide guarantees to SMEs as part of a national program organized in partnership with the Central Bank of Jordan (CBJ).

The program, which has been extended until the end of April 2023, provided 552 enterprises with finance totaling JD109.4 million, providing a strong support mechanism for businesses dealing with the pandemic's effects.

The firm also reported significant activity in its microenterprise support program, financing 533 projects with guarantees totaling nearly JD3.6 million. This effort demonstrates JLGC's commitment to strengthening microenterprises, an important sector for job development and economic diversity.

JLGC expanded its support by playing an important role in enabling trade and local sales through its export and local sales credit guarantee program. In 2023, the program encompassed 5,736 shipments with a guaranteed value of approximately JD187.7 million, which included 2,466 export shipments and 3,270 local sales shipments.

This comprehensive coverage not only helps to continue commercial operations but also promotes Jordanian products to enter new markets.

Looking ahead to 2024, JLGC predicts increased participation in its export credit guarantee program, particularly after the Industrial Support and Development Fund program was launched in the second half of 2023.

Last year, 46 Jordanian industrial exporters were approved for the program, which provides subsidies of up to JD35,000 per company per year for insurance expenditures such as guarantee fees and external buyer inquiries.

JLGC reported a 22 percent increase in total revenues for 2023, reaching JD6.8 million from JD5.6 million in 2022. This financial improvement was due to a rise in both operating and investment revenues, highlighting the corporation's effective management and strategic efforts.

The corporation's total shareholders' equity increased to JD41.3 million at the end of 2023, up from JD39.5 million the previous year, while total assets rose to JD740 million from JD715 million. JLGC's net earnings after tax increased to JD1.8 million in 2023, from JD1.2 million in 2022, indicating a good fiscal year.

JLGC's Board of Directors advised against dividend distribution for the fiscal year 2023, consistent with its aim of strengthening its capital base. The General Assembly has been called to its thirtieth regular meeting on March 26, 2024, to consider future directions and plans.

Read more National news
Jordan News