The Ministry of Planning and International Cooperation (MoPIC) in Jordan, with assistance from KfW, a German government-owned development bank, recently developed a new policy framework for the microfinance industry. Although the text has not yet been released, the new policy delineates specific strategy components and resources intended to further promote microfinance services in the country, according to CGAP (Consultative Group to Assist the Poor).
In January 2005, MoPIC formed a “Microfinance Committee” with technical support from CGAP to design the country’s first national strategy for the development of its microfinance sector for the five-year period ending 2010. The main objectives of the original strategy included the removal of subsidies and other government support in order to encourage the private sector to increase its role in the provision of financial services to poor households.
A review of the sector indicated an increase in borrowers from 76,800 to 203,000 between 2006 and 2010 and a gross loan portfolio that reached JOD 111.6 million (USD 157.5 million). In addition, the review highlighted the increased sharing of client credit data among microfinance institutions (MFIs) to avoid client over-indebtedness as well as increased diversity of commercial funding sources for MFIs to finance expansion and development.
By Hajar Elaalej, Research Associate
Source and Additional Resources:
Microfinance.cgap.org, “New Policy Framework for Inclusive Finance in Jordan”, http://microfinance.cgap.org/2011/06/06/new-policy-framework-for-inclusive-finance-in-jordan/
“National Strategy for Microfinance” (for 2005-2010), by Ministry of Planning & International Cooperation, http://www.mop.gov.jo/uploads/National_Strategy_for_Microfinance.pdf
MicroCapital Brief, July 7, 2010, “Jordan’s Microfund for Women Launches Gender-Sensitive Microinsurance Product, Caregiver, in Partnership with Women’s World Banking (WWB)”, https://www.microcapital.org/microcapital-brief-jordan%E2%80%99s-microfund-for-women-launches-gender-sensitive-microinsurance-product-caregiver-partnership-with-women%E2%80%99s-world-banking-wwb/
Microfinance Event, July 7, 2010, “Sanabel Microfinance Network of Arab Countries to Host Eighth Annual Conference, Amman, Jordan, June 7- June 9, 2011”, https://www.microcapital.org/microfinance-event-sanabel-microfinance-network-of-arab-countries-to-host-eighth-annual-conference-amman-jordan-june-7-june-9-2011/
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