The Jordan Kuwait Bank and the European Investment Bank Unite their Efforts to Support Small and Medium-Sized Enterprises
Batikhi: There is still a commitment of the Jordan Kuwait Bank to support the local economy, which is considered a top priority
As part of its support for the Jordanian economy, the European Investment Bank has provided €100 million ($119 million) in financing to the Jordan Kuwait Bank (JKB), to be loaned by the Jordan Kuwait Bank in turn to private sector companies affected by the economic consequences of the COVID-19 pandemic.
This initiative is part of the European Response Team to the COVID-19 crisis, which aims to support sustainable social and economic recovery in the region. It also falls within the framework of the Economic Resilience Initiative between the European Union and the European Investment Bank, which aims to promote private sector development by supporting small and medium-sized enterprises as key actors to support economic growth and job generation in Jordan.
On this occasion, Flavia Palanza, Director of the Neighboring Countries Department of the European Investment Bank, said, “One of the EIB’s most important priorities is to support the ability of the private sector to withstand this unprecedented crisis, by providing financing through our cooperation with the Jordanian banking sector and the support of the European Union. In this context, we are proud of our partnership with Jordan Kuwait Bank. This partnership aims to provide vital financing especially for business and, ultimately, support jobs and strengthen the resilience of the economy in the midst of this current crisis.”
Ms. Hadjitheodosiou also noted that this funding is complementary to other EU programs that support economic growth, such as the €64 million program “EU Support for Economic Reforms for Growth and Jobs in Jordan”, which supports the implementation of the government’s economic reform plans to enhance the competitiveness of the private sector and investment climate, while strengthening public financial management.
Mr. Haitham Al Batikhi – Executive General Manager of the Bank – said, “There is still a commitment for Jordan Kuwait Bank to support the local economy, which is a top priority. The Bank has been a strong supporter and partner of SMEs over the years, particularly during this unprecedented time. Since the beginning of the epidemic, the Bank has made supporting small and medium-sized enterprises a top strategic priority, according to which a 35% growth was recorded in the credit facilities granted to this sector during 2020, which were granted at very low interest rates and guaranteed by the Jordan Loan Guarantee Corporation by up to 85%, Which supported the operational activity of these companies, in addition to postponing the payment of premiums for more than 300 companies during this period.
Mr. Batikhi continued: “Jordan Kuwait Bank is proud to join forces with the European Investment Bank to finance this vital and crucial part, which in turn will provide job protection, develop commercial activities and ultimately stimulate the local economy. We greatly appreciate all the support and trust that the European Investment Bank has provided in the Jordan Kuwait Bank to provide financing to local businesses to meet the challenges posed by the pandemic and to support the economic recovery in Jordan.”