EIB and Capital Bank of Jordan join forces to support SMEs
July 13, 2020
The European Investment Bank (EIB) is supporting the Jordanian economy with a €70 million line of credit to Capital Bank of Jordan to be on-lent primarily to local small and medium-sized enterprises (SMEs) that have been severely affected by the economic consequences of the coronavirus outbreak.
SMEs are the backbone of the Jordanian economy as they account for over 95% of local businesses, contribute to more than 50% of GDP, and employ about 60% of the working population. As a consequence of the COVID-19 outbreak, many companies have experienced a decrease in turnover and profitability, leading to payment delays and an increased demand for liquidity. It is now crucial to step up support to private sector businesses, thus helping to protect jobs and keep the economy going.
The EIB financing comes under the Economic Resilience Initiative (ERI), a joint EIB and EU programme aiming to support the countries in the Mediterranean region that have been most impacted by the refugee crisis. This is the EU bank’s first operation in response to the COVID-19 impact in Jordan, and is part of its €6.77 billion support package in countries outside the EU in the context of Team Europe’s response to help mitigate the impact of the coronavirus pandemic.