European Investment Bank and Jordan Kuwait Bank Join Forces for Second Time Providing USD 63 Million Support in Jordanian Business Investments for SMEs
- EIB Vice President agrees USD 63 million new financing loan to support joint initiatives during visit to Amman
- Joint program to support business expansion and job creation across Jordan
The European Investment Bank (EIB) partners with Jordan Kuwait Bank (JKB) to improve access to financing entrepreneurs and businesses across Jordan under a new USD 63 million financing loan, announced today in Amman.
The European Investment Bank has agreed to provide USD 63 million to JKB to facilitate financing to local businesses. The new lines of credit will enable businesses across the country to expand their operations, create jobs, and harness new business opportunities. This is the second EIB loan to Jordan Kuwait Bank and is part of a broader EUR 350 million financing program, endorsed by the EIB in May 2022, aimed at strengthening the economic resilience of Jordan’s private sector.
The latest European Investment Bank support for private sector investments in Jordan was confirmed during an official visit to Amman by Gelsomina Vigliotti, Vice President of the European Investment Bank.
Haethum Buttikhi – Chief Executive Officer at Jordan Kuwait Bank – commented: “Jordan Kuwait Bank remains committed to supporting SMEs and Mid-Caps that forms the backbone of Jordan’s economy. The new cooperation with the EIB is aimed at funding key sectors in Jordan and to support business investments, Jordanian SMEs, and support new and existing clients to grow and prosper. Additionally, and despite all the economic challenges and the impact of increased interest rates, this facility will provide the means to lend and support SMEs at lower rates.
“Businesses across Jordan and around the world have been impacted by energy and food price shocks, inflation, trade and business challenges caused by the COVID-19 pandemic, regional conflicts and climate change. A new cooperation with Jordan Kuwait Bank demonstrates how Jordanian and European partners can support Jordanian business, enabling them to create jobs and expand their activities. The European Investment Bank is pleased to offer a new USD 63 million targeted financing loan to support Jordanian businesses and support Jordan during challenging and uncertain times.” said Gelsomina Vigliotti, Vice President of the European Investment Bank.
Ambassador Maria Hadjitheodosiou – Head of the European Union Delegation to the Hashemite Kingdom of Jordan – stated: “The European Union has pledged to support Jordan’s private sector. The new European Investment Bank support for improved access to corporate finance in Jordan demonstrates how Team Europe is building economic resilience and contributing to job creation.”
Working with Jordanian partners to strengthen regional economic resilience
The EIB financing is part of the “Jordan Loan for SMEs and Midcaps”, a EUR 350 million streamlined financing program agreed upon by the 27 European Union shareholders of the European Investment Bank in May, 2022.
This initiative – the most considerable - dedicated EIB support for private sector investment in Jordan, is strengthening access to finance by Jordanian businesses, strengthening economic resilience, and helping to reduce the impact of the conflict in Ukraine and Syria and the COVID-19 pandemic.
Team Europe support for private sector investment in Jordan
The latest EIB backed business financing loan in Jordan is part of the EIB’s increased global effort to ensure businesses continue to have access to finance when faced with unprecedented health, economic and trade challenges agreed upon by European Union finance ministers within weeks of the start of the COVID pandemic.
The European Investment Bank is the world’s largest international public bank, directly owned by the 27 European Union Member States. Since 1979, the EIB has provided EUR 927 million for private investments across Jordan.