AMMAN — The Jordan Loan Guarantee Corporation (JLGC) and the Islamic International Arab Bank (IIAB) on Wednesday signed an agreement to launch the "Retail Traders Guarantee" programme in support of supply chains.

 

The initiative aims to enhance the capacity of retail establishments, particularly micro and small enterprises, to secure necessary funding for operational requirements and working capital, the Jordan News Agency, Petra, reported.

 

According to a JLGC statement, the agreement was signed by JLGC Director General Adnan Naji and IIAB General Manager Eyad Asali.

 

Patronising the ceremony, Governor of the Central Bank of Jordan (CBJ) Adel Al Sharkas emphasised that the central bank continues to back initiatives promoting financial inclusion and expanding access to finance for micro and small businesses, in alignment with national economic development priorities.

 

Sharkas noted that loan guarantee schemes serve as crucial mechanisms to mitigate credit risks for commercial banks, boosting their ability to extend facilities to productive sectors, as this reinforces supply chain sustainability, stimulates economic growth and generates job opportunities.

 

The programme's rollout forms part of efforts to advance financial inclusion and empower the retail sector, a cornerstone of local supply chains by guaranteeing credit facilities extended to merchants, helping them maintain inventory levels and sustain business operations.

 

For his part, Naji underscored that the agreement reflects the corporation's commitment to developing guarantee options tailored to various economic sectors, whilst expanding access to finance for small-scale enterprises to foster their continuity and growth.

 

Asali highlighted the significance of collaborating with the JLGC to provide financial solutions that support traders in meeting operational demands, thereby driving economic activity and stabilising supply chains.

 

The agreement falls within joint efforts to bolster cooperation between the banking sector and the JLGC, aiming to broaden the beneficiary base of guarantee schemes, stimulate economic performance and enhance enterprise growth, ultimately benefiting the national economy.