The EBRD loan will support Bank al Etihad’s growth plans and lending capacity, including to MSMEs, thus improving MSME access to finance, which remains a major challenge for this segment of the economy
The EBRD is supporting the financial sector and micro, small and medium-sized enterprises (MSMEs) in Jordan with a JOD 21.3 million subordinated loan to Bank al Etihad that will support its growth and lending capacity. This is the first time that the EBRD has provided a Basel III-compliant subordinated loan in Jordan or the wider southern and eastern Mediterranean region. The loan is aimed at strengthening Bank al Etihad’s capital structure in line with the Basel III instructions that Jordan adopted in 2016.
The Basel III instructions seek to improve regulation, supervision and risk management within the Jordanian banking sector to enhance the ability of banks to face risks. The EBRD loan will support Bank al Etihad’s growth plans and lending capacity, including to MSMEs, thus improving MSME access to finance, which remains a major challenge for this segment of the economy.
In addition, Bank al Etihad will benefit from tailored technical assistance support to help with reviewing and further strengthening the bank’s recovery plan and risk-management function, to comply with international best practices.
Bank al Etihad is the fourth-largest bank in Jordan in terms of total assets and is listed on the Amman Stock Exchange.
Since 2012, the EBRD has provided close to €1.4 billion to 46 projects in Jordan of which 73 per cent are in the private sector.
Source: Company Press Release