European Investment Bank Partners with Housing Bank to Support Jordanian Private Sector Amid COVID-19 Crisis

Strategic Insights -

The European Investment Bank (EIB) has partnered with Housing Bank to provide a 100 million line of credit to local private sector businesses in Jordan, severely impacted by the economic consequences of the coronavirus outbreak. This operation represents a coordinated effort with the European Union to support sustainable social and economic recovery in the region, forming part of the EU-EIB Economic Resilience Initiative (ERI) to promote private sector development through small and medium-sized enterprises (SMEs).

Key Takeaways:

  • The EIB is providing a 100 million line of credit to local private sector businesses in Jordan through a partnership with Housing Bank to support economic recovery amid the COVID-19 crisis.
  • The operation aims to support SMEs, which account for over 95% of local businesses in Jordan, contribute to more than 50% of GDP, and employ about 60% of the working population.
  • The EIB and Housing Bank have established a specialized department to support SMEs in obtaining necessary funding through preferential rates.
  • Housing Bank has launched a financing program to support SMEs, offering low interest rates of 2% as of April 2020, in line with the Central Bank of Jordans directions.
  • The European Union Ambassador to Jordan, H.E. Maria Hadjitheodosiou, welcomed the financing, emphasizing the importance of supporting SMEs in maintaining jobs and creating economic growth.

Statistics:

  • 100 million: The line of credit provided by the EIB to local private sector businesses in Jordan through a partnership with Housing Bank.
  • 95%: The percentage of local businesses in Jordan that are SMEs.
  • 50%: The contribution of SMEs to Jordans GDP.
  • 60%: The percentage of the working population employed by SMEs in Jordan.
  • 2%: The low-interest rate offered by Housing Banks financing program to support SMEs as of April 2020.

Sources:

  • European Investment Bank (EIB)
  • Housing Bank
  • European Union (EU)
  • EU Ambassador to Jordan, H.E. Maria Hadjitheodosiou
  • Central Bank of Jordan
  • Journal of Economic Research (2020)
  • World Bank (2020)