EBRD, Bank al Etihad sign $20 million agreement

Amman, The European Bank for Reconstruction and Development (EBRD), and the Bank al Etihad in Jordan, on Thursday, signed a $20 million risk-sharing agreement.

Under the agreement, the EBRD will share risk in individual eligible loans extended by Bank al Etihad to Jordanian businesses, an EBRD statement said.

The new instrument promotes greater access to finance to local enterprises and will allow Bank al Etihad to meet the financial needs of its clients more efficiently. Clients will also benefit from technical assistance under the EBRD’s Advice for Small Business programme.

The new agreement was signed by General Manager of Bank al Etihad, Nadia Al- Saeed, and the EBRD Director for the Eastern Mediterranean and Head of the office in Jordan, Heike Harmgart.

The new instrument promotes greater access to finance to local enterprises and will allow Bank al Etihad to meet the financial needs of its clients more efficiently.

Clients will also benefit from technical assistance under the EBRD’s Advice for Small Business programme, according to the statement.

Bank al Etihad is the fourth largest bank in Jordan in terms of total assets and is listed on the Amman Stock Exchange.

The EBRD has previously supported Bank al Etihad with a $20 million local currency equivalent credit line for on-lending to micro, small and medium-sized enterprises.

The new agreement was signed on the sidelines of the EBRD’s Annual Meeting and Business Forum held at the Dead Sea region.

Jordan joined the EBRD in 2011 and became a country of operations in 2012.

To date the Bank has invested close to Euros 1 billion in the country’s economy.

Source: Jordan News Agency