Figures released by Jordan’s Planning Ministry indicate that over 120,000 citizens have borrowed from local microfinance institutions (MFIs) with loans outstanding at JD 65 million, the dollar equivalent of over USD 91 million. Specifically, 7 Jordanian MFIs were recognized at a Ministry ceremony where each signed a code of ethics governing this joint effort.
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
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[…] Figures released by Jordan’s Planning Ministry indicate that over 120000 citizens have borrowed from local microfinance institutions (MFIs) with loans outstanding at JD 65 million, the dollar equivalent of over USD 91 million. Original post […]
[…] 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 theDevelopment and Employment Fund (DEF), an MFI with a loan portfolio of USD 45 million… [click here to read the rest of this article…] […]
[…] At the awards ceremony, MoPIC Minister Suhair Al-Ali announced that her ministry is coordinating with international donors to give MFIs technical and financial support that will facilitate scaling-up activities, expansion into poor areas, and financial product diversification.? French and Spanish organizations have contributed to MFIs about EUR 12 million (USD 15 million) this year alone.? The government pledged further support of the microfinance sector with a JOD 5 million (USD 7.1 million) grant channeled through MoPIC to the Development and Employment Fund, which will in turn provide funds to help sustainable MFIs with rural expansion and other ongoing projects.? For more information on the Jordanian government’s microfinance promotion efforts, please see a recent Microcapital story on the development of a code of ethics for domestic MFIs. […]