Source: CHF International.
Original press release available here.
MARYLAND, August 6 – A new USD 250 million fund will enable CHF International (CHF) to play a role in expanding mortgage lending to low-income households in Jordan. The fund, made possible through funding by the Overseas Private Investment Corporation (OPIC), will finance new OPIC loan facilities and enable three banks to extend long-term mortgage lending to low-income households in Jordan. The banks are the Arab Bank, the Housing Bank for Trade, and the Cairo Amman Bank. The banks will use the financing to fund 25-year mortgages for low-income households in Jordan in connection with King Abdullah’s National Housing Initiative, through which the country aims to construct 20,000 residences annually for the next five years.
The new lending program was recently celebrated in Amman at a ceremony attended by CHF International President and CEO Michael Doyle, OPIC President and CEO Robert Mosbacher, Jr., and Jordanian Minister of Public Works and Housing Eng. Sahl Majali, who hosted the event. Attendees signed a Memorandum of Understanding memorializing the project.
“It’s enormously gratifying to be able to play a role in providing this type of critical financing to low-income households in Jordan,” said CHF President Michael Doyle. He added, “CHF is an organization that has been working hard to improve the lives of Jordanians since 1997, when we began the microcredit program that ultimately developed into the Middle East Micro-Credit Company (MEMCC). With our global experience in the field of credit, we know what a fundamental difference access to credit makes in these peoples’ lives.” The Jordanian banking system is considered one of the most well-regulated and transparent in the Arab world.
A joint venture by CHF International and the Middle East Investment Initiative (MEII) will serve as the U.S. sponsor of the project. It will provide technical oversight including reviewing mortgage credit policies and conducting on-site monitoring of the banks’ performance. CHF and MEII are currently managing USD 165 million loan guarantee, with the support of OPIC, which is supporting Palestinian banks to provide business loans to small- and medium-sized businesses to stimulate economic opportunity and growth in the West Bank.
Founded in 1952, CHF International’s mission is to be a catalyst for long-lasting positive change in low- and moderate-income communities around the world, helping them to improve their economic, social and environmental conditions. CHF has worked in over 100 countries since inception, and currently has operations in more than 30.
Similar Posts:
- MICROCAPITAL BRIEF: FINCA Microfinance Jordan, JOHUD Partner to Fund Community Businesses
- MICROCAPITAL BRIEF: World Bank’s IDA Lending $15m to Djibouti for Low-income Housing Finance, Policy Reform
- MICROCAPITAL BRIEF: OPEC Fund Donating $1m to UNCDF to Boost Energy Access, Reduce Emissions, Starting in Madagascar, Tanzania
- MICROCAPITAL BRIEF: KEPFIC Member Pension Funds Invest $61m in Acorn Holdings, Kenya Mortgage Refinance Company (KMRC) to Boost Affordable Housing
- MICROFINANCE EVENT: Sanabel’s 16th Annual Conference; November 21-22, 2023; Dead Sea, Jordan – POSTPONED
