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Ammon News - AMMONNEWS - Deputy Governor of the Central Bank of Jordan (CBJ), Maher Sheikh Hassan, on Saturday called for devising new mechanisms for banks to deal with credit applications submitted by small- and medium-sized enterprises (SMEs) with a focus on economic feasibility of the business and the level of cash flows, rather than relying on traditional guarantees.

He spoke during a workshop on developing lending techniques for SMEs, which was held in cooperation between the CBJ, Jordan Loan Guarantee Corporation (JLGC) and the Jordan Loan Guarantee Facility (JLGF) project, financed by the US Agency for International Development (USAID).

Hassan pointed to the importance of cooperation among funding institutions in the Kingdom, JLGC and JLGF to upgrade ways and means to secure funding for SMEs, which, he said, are vital for creating jobs and stimulating growth, particularly in view of the economic challenges the Kingdom is facing.

JLGC Director General, Mohamed al-Jafari, said that such cooperation with financial institutions in the Kingdom would empower economically viable SMEs and startups to achieve the required funding through developing lending mechanisms for small and micro enterprises based on cash flows, rather than traditional mortgage-based lending in accordance with international best practice in this field.

Jafari said that the JLGC's approach is based on that concept in the evaluation and consideration of the funding applications for startups and SMEs.

JLJF program Director, Michael Telford, said that the loan facility project, with financial support from USAID and an OPEC guarantee, has been promoting competitiveness and growth in the private sector since 2012 through improving access to capital to start or expand SMEs.