The Ministry of Planning and International Cooperation of Jordan, a governmental institution that aims to affect sustainable development, reportedly has stated that the European Union (EU) will provide funding in the amount of EUR 25 million (USD 32.5 million) to support Jordan’s 2012-2014 executive plan to establish a nationwide microfinance program. The program is part of an EU initiative to bring democratic reforms to the nation. The microfinance program previously gained the support of Kreditanstalt für Wiederaufbau Bankengruppe (KfW) a German development bank; and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), the German agency for international cooperation. GIZ will advise the government in analyzing the legal framework of the country’s microfinance sector.
As of 2011, KfW reported total assets of EUR 495 billion (USD 642 billion) and an overall commitment to developing and transition countries totaling EUR 70.4 billion (USD 91.5 billion). In the same year, GIZ reported a business volume of EUR 2 billion (USD 2.6 billion).
The 8 microfinance institutions in Jordan that report 2011 data to the US-based nonprofit Microfinance Information Exchange (MIX), hold an aggregate loan portfolio USD 193 million and serve 220,300 active borrowers.
By Jennifer Young, Research Associate
About Kreditanstalt für Wiederaufbau Bankengruppe (KfW Bank Group):
The KfW Bankengruppe (KfW Bank Group) is a German development bank whose objective is to support economic, social and ecological development worldwide. Owned by the Federal Republic and the Länder (federal states), it offers financial support in the areas of small and medium-sized enterprise, entrepreneurship, environmental protection, housing, infrastructure, education, finance, and development cooperation. As of 2011, KfW Bankengruppe reported total assets of EUR 494.8 billion (USD 642.2 billion) and an overall commitment to developing and transition countries totaling EUR 70.4 billion (USD 91.5 billion).
About Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH:
Founded in 1975, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is an agency of the German federal government. It seeks to promote sustainable development in 128 countries by providing financial advisory services and funding for various programs. As of 2011, GIZ reported a business volume of EUR 2 billion (USD 2.6 billion).
Sources and Additional Resources
Jordan Times Story: “Microfinance Reforms Draw EU, German Support”
MicroCapital Story: “MICROCAPITAL BRIEF: Development and Employment Fund (DEF) of Jordan Offers $5m in Grants to Microfund for Women (MFW), Ahli Microfinance Company (AMC),” October 24, 2012.
MicroCapital Story: “MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $1.5m to FINCA Jordan to Boost Microfinance Services,” October 11, 2012.
MicroCapital Universe Profile: Kreditanstalt für Wiederaufbau Bankengruppe (KfW Bank Group)
MicroCapital Universe Profile: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
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