MICROCAPITAL STORY: Spanish Agency for International Cooperation (AECID) Provides US$ 8.6 million in Funding for Jordan’s Microfund for Women

The Spanish government provided funds of Euro 6 million (USD 8.6 million) to the Microfund for Women, a Jordanian microfinance institution. Under an agreement signed on December 15, 2008 at the Ministry of Planning and International Cooperation, the Spanish Agency for International Cooperation (AECID) provided the Microfund for Women with the funds, providing additional support to the Jordanian microfinance sector, which accounts for approximately 20 percent of the of its gross domestic product (GDP). This is not the first time that the Spanish government has funded Jordanian microfinance in 2008. In February AECID provided the National Microfinance Bank (NMB) with Euro 5 million (USD 7.2 million) and the Micro Credit Company (Tamweelcom) with Euro 4 million (USD 5.74 million).

Microfund for Women (MFW) is a private Jordanian microfinance institution (MFI), registered at the Ministry of Trade and Industry in 1999 as a pilot lending program. It was initiated through Save the Children in Amman in 1994. MFW’s head office is in Amman, but has nine additional branches covering central and northern Jordan. In 2007 it reported total assets of USD 13.9 million with a debt to equity ratio of 100.68 percent and a return on assets of 9.75 percent.

The Spanish Agency of International Cooperation for Development (AECID) was established in 1988 and is a government agency that operates through the State for International Cooperation (SECI). AECID is responsible for the design, operations and management of development and cooperation projects and programmes and has 42 offices globally.

Additional Sources:

AECID: “Home

The Jordan Times: “Spain extends 6m euros to women microfund

Ministry of Planning and International Cooperation: “Home

The Mix Market: “Microfund for Women Profile

Symbiotics: “Spain extends 9m euros to Jordan’s microfinance companies

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