ammonnews.net

Ammon News - AMMAN (Petra)The International Finance Corporation (IFC), a member of the World Bank Group, is helping foster a favorable banking environment for smaller businesses in Jordan to help them get the financing they need to grow and jobs, spurring the economic performance of the country.

IFC, in cooperation with the Association of Banks in Jordan (ABJ), will provide " Scaling Up SME Banking Business Training" for mid-level bank officers and managers in Jordan to help them scale up their banking operations to small and medium businesses.

The three-day training seminar will develop a thorough understanding of SME banking operations and international best practices with key focus areas on; business models for SME Banking, identifying Market Opportunities, Customer Management, Products & Services, Sales, Credit Risk Management, and IT & MIS.

"IFC will help us build the capacity of banks to accurately assess both the risks and potential benefits of lending to smaller businesses and explore different financing options," said Dr. Adli Kandah from ABJ.

In developing economies of the Middle East and North Africa, small and medium enterprises face difficulty accessing finance mainly due to their limited resources, lack of collateral, and perceived risk by lenders. This lack of finance impairs their capacity to grow.

In Jordan, MSMEs account for 99% of the enterprises. They are the major contributors to the economy, and to its competitiveness, and employment potentials. Despite that, SMEs have low access to finance and account for 11 percent only of the bank lending in Jordan.

"Small businesses are the key source for boosting the region’s dynamism and development," said Ahmed Attiga, IFC Country Manager in Jordan. "Strengthening the financial capacity of small businesses will help them grow, generate more output, and much-needed employment opportunities." He added that it is very important for banks in Jordan to support this growth.

This initiative is part of the joint IFC and WB MSME facility efforts in Jordan to build the capacity of financial institutions for sustainable financing as well as extend financial services to smaller enterprises, support women entrepreneurs, and foster a better business environment by aiding reforms to the country’s investment climate. The facility is supported by UK Aid, SECO Switzerland, and the government of Japan.

IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, its investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to jobs, spark innovation, and tackle the world’s most pressing development challenges.

/