MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $2m to FINCA Jordan for On-Lending to Micro-, Small Enterprises (MSEs)

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, recently announced that it will disburse a senior loan of USD 2 million to Foundation for International Community Assistance (FINCA) Jordan, a microfinance institution (MFI) based in Jordan that is a part of the US-based, nonprofit FINCA International microfinance network. FINCA Jordan plans to use the proceeds of this loan for on-lending to Jordanian micro- and small enterprises (MSEs) in an effort to create new job opportunities and further Jordan’s economic development.

As of 2012, FINCA Jordan reported total assets of USD 9 million, a gross loan portfolio of USD 7.6 million and approximately 15,000 clients served by branches in the Jordanian cities of Amman, Dier Alla, Jerash, Norh Shouneh, Sahab, Zarqa and Ziezya. FINCA Jordan does not accept deposits. FINCA International has total assets of USD 814 million as of December 2012 and serves approximately 1 million clients through its subsidiaries in 22 countries as of June 2012. In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Tejas Jain, Research Associate

About FINCA Jordan

Foundation for International Community Assistance (FINCA) Jordan is an arm of FINCA International, a US-based nonprofit microfinance organization that serves approximately 700,000 people through its subsidiaries in 22 countries. As of 2012, FINCA Jordan reported total assets of USD 9 million, a gross loan portfolio of USD 7.6 million, approximately 15,000 clients and branches in the Jordanian cities of Amman, Dier Alla, Jerash, Norh Shouneh, Sahab, Zarqa and Ziezya. FINCA Jordan does not accept deposits.

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

Sources and Additional Resources:

European Bank for Reconstruction and Development Website, “EBRD Supports Small Enterprises in Jordan”
http://www.ebrd.com/pages/news/press/2013/131224c.shtml

MicroCapital Article, January 11, 2014, “Grameen-Jameel Microfinance to Loan $2m Each to Microfund for Women of Jordan, Al Majmoua of Lebanon”
https://www.microcapital.org/microcapital-brief-grameen-jameel-microfinance-to-loan-2m-each-to-microfund-for-women-of-jordan-al-majmoua-of-lebanon/

MicroCapital Article, January 8, 2014, “European Bank for Reconstruction and Development (EBRD) Loans $4m to Microfund for Women (MFW) of Jordan to Support Onlending to Female Entrepreneurs”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-4m-to-microfund-for-women-mfw-of-jordan-to-support-onlending-to-female-entrepreneurs/

MicroCapital Article, December 27, 2013, “European Bank for Reconstruction and Development (EBRD) May Loan $27m to Tunisie Leasing to Support On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-may-loan-27m-to-tunisie-leasing-to-support-on-lending-to-micro-small-medium-sized-enterprises-msmes-in-tunisia/

MicroCapital Article, October 23, 2012, “US Agency for International Development (USAID), FINCA Jordan Launch Youth Finance Project”
https://www.microcapital.org/microcapital-brief-us-agency-for-international-development-usaid-finca-jordan-launch-youth-finance-project/

MicroCapital Universe Profile: FINCA Jordan
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Jordan

MicroCapital Universe Profile: FINCA International
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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