Magazine article The Middle East

EBRD and Bank Al Etihad Support Small Businesses and Trade in Jordan

Magazine article The Middle East

EBRD and Bank Al Etihad Support Small Businesses and Trade in Jordan

Article excerpt

The European Bank for Reconstruction and Development (EBRD) is providing a US$ 20 million credit line to Bank al Etihad for on-lending to micro, small and medium-sized enterprises (MSMEs). The EBRD will also extend a trade finance line of $10 million to boost international and intraregional trade.

Access to finance remains a challenge for Jordanian MSMEs, despite the fact they account for 95 per cent of active firms in the country; MSMEs provide 70 per cent of total private sector employment and generate approximately 40 per cent of gross domestic product.

The EBRD is addressing these financial constraints by disbursing the equivalent of $20 million in Jordanian dinars to facilitate access to finance for smaller businesses, which have the potential to contribute significantly to economic growth and employment.

Dr. Heike Harmgart, EBRD Head of Office in Amman, said: "We are very happy to team up with Bank al Etihad in support of MSMEs, which we consider to be the backbone of the economy and a priority sector to develop. Trade is also an important catalyst for economic growth, especially in Jordan."

Bank al Etihad General Manager, H.E. Nadia Al Saeed, commented: "MSMEs are instrumental in catalysing growth and driving economic development. As such, supporting these businesses is at the forefront of our priorities at Bank al Etihad. I would like to thank the ERBD for its interest in helping us advance Jordan's dynamic MSME sector, and I am confident that our partnership will yield positive results for all parties involved. …

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