Amman: The Jordan Loan Guarantee Corporation (JLGC) and the Islamic International Arab Bank (IIAB) have signed an agreement to launch the "Retail Guarantee" program. This initiative is designed to support supply chains and enhance access to financing for micro and small retail enterprises, addressing operational needs and working capital requirements.
According to Jordan News Agency, the agreement was signed by JLGC Director General Adnan Naji and IIAB General Manager Iyad Asali. Central Bank of Jordan (CBJ) Governor Adel Sharkas, speaking at the signing ceremony, emphasized the central bank's ongoing support for initiatives that promote financial inclusion and expand financial access for micro and small businesses, aligning with national economic goals.
Sharkas explained that loan guarantee schemes are crucial for mitigating credit risks faced by banks. These schemes encourage banks to provide funding to productive sectors, which in turn stabilizes supply chains, stimulates economic growth, and generates employment opportunities.
The "Retail Guarantee" program specifically aims to empower the retail sector, considered a fundamental link in domestic supply chains, by guaranteeing credit facilities. This will assist merchants in securing inventory and maintaining business operations without disruption.
Adnan Naji reiterated JLGC's commitment to developing specialized guarantee programs that cater to the financing needs of various economic sectors, thus supporting the sustainability of small businesses.
Iyad Asali underscored the significance of partnering with JLGC to offer practical financing solutions for retailers. This collaboration is expected to drive economic activity and enhance the stability of supply chains.
The partnership between the banking sector and JLGC is part of ongoing efforts to expand the reach of guarantee programs and strengthen local economic development.