EBRD and Bank al Etihad support small businesses and trade in Jordan

AMMAN – The European Bank for Reconstruction and Development (EBRD) on Monday said it will be providing a $20 million credit line to Jordan's Bank al Etihad for on-lending to micro, small and medium-sized enterprises (MSMEs).

In a statement e-mailed to The Jordan Times, the EBRD said it will also extend a trade finance line of $10 million to boost international and intraregional trade.

According to the EBRD, access to finance remains a challenge for Jordanian MSMEs, despite the fact that they account for 95 per cent of active firms in the country; MSMEs provide 70 per cent of total private sector employment and generate approximately 40 per cent of the gross domestic product.

The EBRD is addressing these financial constraints by disbursing the equivalent of $20 million in Jordanian dinars to facilitate access to finance for smaller businesses, which have the potential to contribute significantly to economic growth and employment.