AMMAN — The
European Investment Bank (
EIB) seeks to bolster the Jordanian economy with a
$119 million line of credit to
Jordan Kuwait Bank (JKB)
to be on-lent primarily to local SMEs that have been severely impacted by the
economic consequences of
COVID-19.
اضافة اعلان
The
initiative is a part of Team Europe’s overall response to the COVID-19 crisis,
which aims to support the region’s sustainable social and economic recovery. It
also falls under the EU-EIB Economic Resilience Initiative, which amongst
its primary objectives, intends to promote private sector development through
the support to SMEs as key players for generating economic growth and
employment opportunities in Jordan.
Flavia
Palanza, director of EIB’s Neighboring Countries Department, said “It is
one of the EIB’s top priorities to support the resilience of the private sector
during this unprecedented crisis with the provision of funding through our
cooperation with the Jordanian banking sector and the support of the
European Union. In this context, we are proud to partner with Jordan Kuwait Bank. A
partnership through which we aim to make available vital and much-needed
financing for businesses and, ultimately, sustain jobs and strengthen the
resilience of the economy in the midst of the current crisis.”
EU
Ambassador to Jordan Maria Hadjitheodosiou welcomed the financing agreement, which will aid SMEs struggling to
address the economic impact of the pandemic, assist them in continuing their
operations and in maintaining employment and creating new jobs. Hadjitheodosiou
also indicated that this financing is complementary to other ongoing EU
programs that support economic growth, such as the 64-million euro program
"EU Support to Economic Reforms for Growth and Jobs in Jordan", which
supports the implementation of the Government’s economic reform plans to
improve private sector competitiveness and the investment climate, while at the
same time strengthening public finance management.
JKB CEO
Haethum Buttikhi said: “Jordan Kuwait Bank’s commitment to the
local economy continues to be a top priority. JKB has been a strong supporter
and partner for SMEs over the years and in particular during this unprecedented
time. Since the onset of the pandemic JKB has made it a top strategic priority
to support SMEs whereby recording a 35-per cent growth in facilities granted to
this segment during 2020, granted at very low interest rates and guaranteed up
to 85-per cent by Jordan Loan Guarantee Corporation, which greatly supported
the operational activity of these companies, in addition to the deferment of
instalments for more than 300 companies during this period.”
Buttikhi
continued: “JKB
is proud to join forces with EIB to finance this vital and critical segment,
that in turn will provide job protection, revitalize business activities and
ultimately stimulate the local economy. We greatly value all the support
and trust that EIB has placed in JKB to provide finance for local businesses to
face the challenges caused by the pandemic and for their support for Jordan’s
economic recovery.”
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