Ammon News - The Jordan Securities Commission (JSC) and the European Bank for Reconstruction and Development (EBRD) signed a cooperation agreement to develop the capital market in Jordan and implement its strategy adopted by the Jordanian government in 2017, with the aim of enhancing economic growth.

Both institutions signed a memorandum of understanding on Wednesday, whereby they commit to benefiting from advantages of each of them to make greater progress in the process of developing the capital market.

The EBRD will provide technical assistance in order to improve the resilience of the Jordanian capital market, with support from the Government of Japan amounting to 1.55 million euros through the Japan Cooperation Fund at the EBRD.

"Through this agreement, the EBRD will work to develop the capital market in Jordan in these difficult economic times," said Director General of the European EBRD for the Eastern Mediterranean region, Philip ter Woort.

He explained that the EBRD's efforts are focused on diversifying the ways to mobilize capital for the Jordanian private sector within a strong and transparent regulatory framework that allows for a better supervision process, which contributes to sustainable economic recovery in Jordan in light of the Corona pandemic.

The strategy sets 7 goals: increasing investor interest, making the financial market more attractive to exporters, reorienting capital market institutions as private sector operations, making the securities sector more competitive, enhancing the capacity of the JSC, offering more attractive investment products, and developing communication programs with investors and exporters.

The memorandum of understanding enhances cooperation between the JSC and the EBRD, and under the agreement, the JSC will remain committed to complying with various applicable international capital markets standards.

Also, the JSC will make every effort to maintain the independence of certain capital market entities and ensure the continued smooth operation of the market, in line with international best practices.

The JSC and the EBRD will promote capital market reforms for the Jordanian government, including agreeing on project management issues, discussing proposed legal and regulatory reforms with Parliament, and submitting proposals for improving the tax law to relevant government bodies.

Jordan had adopted a comprehensive strategy and roadmap for capital market development in 2017, funded by the Government of Japan, with a main objective of promoting Jordan's position as a business destination and investment attraction to create new jobs and achieve prosperity for Jordanians.