- EIB Vice President agrees USD 63 million new financing loan to support joint initiatives during visit to Amman
- Joint program to support business expansion and job creation across Jordan
The European Investment Bank (EIB) partners with Jordan Kuwait Bank (JKB) to improve access to financing entrepreneurs and businesses across Jordan under a new USD 63 million financing loan, announced in Amman.
The European Investment Bank has agreed to provide USD 63 million to JKB to facilitate financing to local businesses. The new lines of credit will enable businesses across the country to expand their operations, create jobs, and harness new business opportunities. This is the second EIB loan to Jordan Kuwait Bank and is part of a broader EUR 350 million financing program, endorsed by the EIB in May 2022, aimed at strengthening the economic resilience of Jordan’s private sector.
The latest European Investment Bank support for private sector investments in Jordan was confirmed during an official visit to Amman by Gelsomina Vigliotti, Vice President of the European Investment Bank.
Haethum Buttikhi – Chief Executive Officer at Jordan Kuwait Bank – commented: “Jordan Kuwait Bank finances investment to corporate, business, and agricultural companies across Jordan, and remains committed to supporting SMEs and Mid-Caps that forms the backbone of Jordan’s economy. The new cooperation with the EIB is aimed to support business investments, Jordanian SMEs, fund key segments in Jordan, and support new and existing clients to grow and prosper. Additionally, and despite all the economic obstacles faced and the hight-interest rates in Jordan, we have managed to offer low-interest rates to support SMEs through this granted loan.”
“Businesses across Jordan and around the world have been impacted by energy and food price shocks, inflation, trade and business challenges caused by the COVID-19 pandemic, regional conflicts and climate change. A new cooperation with Jordan Kuwait Bank demonstrates how Jordanian and European partners can support Jordanian business, enabling them to create jobs and expand their activities. The European Investment Bank is pleased to offer a new USD 63 million targeted financing loan to support Jordanian businesses and support Jordan during challenging and uncertain times.” said Gelsomina Vigliotti, Vice President of the European Investment Bank.
Ambassador Maria Hadjitheodosiou – Head of the European Union Delegation to the Hashemite Kingdom of Jordan – stated: “The European Union has pledged to support Jordan’s private sector. The new European Investment Bank support for improved access to corporate finance in Jordan demonstrates how Team Europe is building economic resilience and contributing to job creation.”
Working with Jordanian partners to strengthen regional economic resilience
The EIB financing is part of the “Jordan Loan for SMEs and Midcaps”, a EUR 350 million streamlined financing program agreed upon by the 27 European Union shareholders of the European Investment Bank in May, 2022.
This initiative – the most considerable - dedicated EIB support for private sector investment in Jordan, is strengthening access to finance by Jordanian businesses, strengthening economic resilience, and helping to reduce the impact of the conflict in Ukraine and Syria and the COVID-19 pandemic.
Team Europe support for private sector investment in Jordan
The latest EIB backed business financing loan in Jordan is part of the EIB’s increased global effort to ensure businesses continue to have access to finance when faced with unprecedented health, economic and trade challenges agreed upon by European Union finance ministers within weeks of the start of the COVID pandemic.
The European Investment Bank is the world’s largest international public bank, directly owned by the 27 European Union Member States. Since 1979, the EIB has provided EUR 927 million for private investments across Jordan.
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
https://www.linkedin.com/company/eib-global/
Jordan Kuwait Bank (JKB), a Jordanian public shareholding company, was founded in 1976 and has successfully evolved into a major player in the Jordanian banking system. The Bank currently operates a domestic network of 68 branches distributed throughout Jordan, in addition to a branch in Cyprus. JKB wholly owns Ejara Leasing Company and holds a controlling share of more than 95.6% in United Financial Investments (UFICO). JKB also has investments with board representation in Algeria Gulf Bank (Algeria), Quds Bank (Palestine) and Middle East Payment Services – MEPS (Jordan).
