Financiers, entrepreneurs receive training on microfinance

AMMAN — The Development and Employment Fund (DEF) on Thursday concluded a training programme on microfinance for small- and medium-sized enterprises (SMEs).

The programme, which was carried out in cooperation with the Arab Planning Institute (API), involved 45 entrepreneurs, DEF employees and representatives of financial institutions, in order to bring all perspectives to the table for discussion.

DEF Director General Abdullah Freij said the training corresponds with the increasing importance of SMEs in creating "balanced and sustainable jobs" that boost social and economic development. 

"It is important to remain up to date with the best practices and worldwide experiences in microfinance," he said at the closing session of the training, which took place at the Jordan Chamber of Industry.

Ihab Maqableh, senior expert at API, told The Jordan Times that the five-day training programme aimed to introduce participants to the social and economic importance of SMEs and to familiarise prospective project owners with the financing they need to create and sustain their businesses. 

"We reviewed the role of non-governmental institutions and loan guarantee corporations in financing SMEs," Maqableh said, noting that banks' credit policies regarding entrepreneurial businesses need to be revisited in way that ensures that the nature and needs of the proposed projects are taken into consideration.     

A number of representatives of microfinance institutions explained their financing policies for SMEs and shared success stories. 

Karam Shakhanbeh, who participated in the programme, said the training was "very helpful" for her as the head of the legal affairs department at the DEF.

"Now I know more about the needs of customers and the standards of SME financing," she told The Jordan Times, adding that she will now suggest suitable collection measures for nonperforming loans that other financing institution presented. 

The API is a nonprofit regional organisation whose primary mission is to advance the cause of economic and social development in Arab countries through national capacity building, research, institutional support and consultancy, expert-group meetings and publication.