Jordan Private Sector Guarantee Facility (JPSGF) *

About the project

The facility will provide partial portfolio guarantees to local financial intermediaries (FIs), either banks or microfinance institutions, under the Global Concessional Finance Facility (GCFF) – Private Sector Operations framework. GCFF supports middle income countries impacted by the influx of refugees, in this case Jordan as a pilot country. By providing a partial risk protection to FIs in form of guarantees on underlying debt-financing granted to MSMEs on a portfolio basis, the operation will encourage the intermediaries in lending underserved and vulnerable groups of the Jordanian society (including women, youth and refugees) as well as affected by the COVID-19 crisis.

Project Development Objective (PDO)

The primary objective is to enhance access to finance for Jordanian micro, small and medium sized enterprises (MSMEs) at better terms and conditions, in particular, through reduced collateral requirements, lower financing costs and longer maturities. The operation will also promote the financial inclusion of refugees and host communities as well as of further underserved segments of the economy.

Project Implementation Status

During the reporting period Q1-Q2 2025, a further progress in the implementation of the program was made. The Capital Bank of Jordan has fully built up its portfolio and maturing loans are being replaced by new loans. Several loans were subject to defaults and restructurings. Also, other two Financial Intermediaries (Microfund for Women and Bank Al Etihad) have started building up the loan portfolios during 2024-2025, although their portfolio ramp up was slightly below the expected level. In the case of BAE, this had to do with internal processes and systems that had to be adjusted (BAE aims to fully digitalize the inclusion process), while in case of MFW, concerns over the portfolio quality slowed down new lending during the reporting period. However, in the next reporting period the portfolio origination should accelerate, also as a result of technical assistance supported from the Economic Resilience Initiative Technical Assistance envelope financed from EIB’s own resources, supporting a roll-out strategy and training of staff.

Due to the ongoing review of Q2, for BAE the current report includes only Q1 figures.

Unfortunately, the counterparty selected for the remaining USD 7m budget decided to pull out of the process at the last minute. The EIB is continuing to engage with the existing and new counterparties to explore the ways to best utilize the remaining guarantee.

Relevant Documents:

• Project Information Document
• EIB Project Information Page