The MFIs include: the Microfund for Women, a non-profit MFI with a loan portfolio of JD 52 million, the dollar equivalent of over USD 73 million; Alwatani (National Microfinance Bank), a non-profit, private shareholding company;  Al-Ahli Microfinance Company, a subsidiary of the USAID-Jordan program “Access to Microfinance & Improved Implementation of Policy Reform” (AMIR); Tamweelcom, a non-profit LLC owned by the Noor Al-Hussein Foundation and with funding of JD 2.5 million, the equivalent of USD 3.5 million; Middle East Microcredit Company, an MFI with a loan portfolio of USD 11 million; FINCA-Jordan, the Foundation for International Community Assistance’s second branch in the Middle East; and the Development and Employment Fund (DEF), an MFI with a loan portfolio of USD 45 million.

The code of ethics is designed to establish basic principles for the Jordanian microfinance sector, ensuring adherence to international best practices.  At the ceremony, Jordan’s Minister of Planning and International Cooperation, Suhair Al-Ali, said that it “outlines the role they [the concerned MFIs] play in improving service delivery, fairness, and accountability in the provision of loans through raising awareness of clients as well as maintaining secrecy of client’s information.”  This initiative is part of a wider effort by the Hashemite Kingdom of Jordan to bring some regulatory framework to the microfinance sector.

Al-Ali stated that the Jordanian government is implementing a long-term strategy to enhance the sector, noting the Ministry’s efforts in soliciting Euro 9 million from the Spanish Agency for International Cooperation (AECI) and Euro 3 million from the French Agency for Development (AFD) in 2008.  She also stated that the Ministry is working with the Consultative Group for Assistance to the Poor (CGAP) to conduct a survey on the legislative environment of Jordan’s microfinance sector in November 2008.  Jordan’s Queen Rania Al-Abdullah is a strong advocate for microfinance and holds a seat on FINCA International’s Board of Directors.

By Mustafa Hashemi, Research Assistant

Additional Sources:

• 1) The Jordan Times: 120,000 Citizens Benefit from Microfinance by Hani Hazaimeh
• 2) Jordanian Planning Ministry: “Al-Ali Launches Code of Ethics for Microfinance Institutions in Jordan“
• 3) MicroCapital Story: “France’s Agency for Development Lends $4.7m to Jordan-based Societe Generale de Banque – Jordanie to Support Jordanian Microfinance Institutions Tamweelcom and MEMCO“
• 4) MicroCapital.org article: “Spain’s Agency for Cooperation and Development Extends $13m to National Microfinance Bank (NMB) and Micro Credit Company (Tamweelcom)“
• 5) Mix Market: MEMCO
• 6) Mix Market: DEF