Amman, Jordan: Capital Bank's CEO Ala Qumsieh and Dr. Mohammed Al-Jafari, Jordan Loan Guarantee Corporation General Director, signed an agreement to cover the risks of financing renewable energy projects.
Under this agreement, which is part of a national program to guarantee the funding for renewable energy projects, promote renewable energy and further help reduce enterprises’ energy bills, the bank will increase lending to small and medium sized enterprises, with a JOD 350,000 ceiling, and a 70% guarantee by the Corporation covering the risk of default.
During the signing ceremony Qumsieh said: “We are delighted to sign this agreement that is in line with the bank’s efforts to provide SMEs specializing in renewable energy with the needed funding, guaranteed by the Jordan Loan Guarantee Corporation. This collaboration is an important step towards lifting the barriers hindering the development of the energy sector. Additionally, it will reflect positively on the society as a whole and achieve sustainable social and economic development.”
Qumsieh added: “This partnership completes the integrated system that Capital Bank is building to support the SME sector. As a result, the bank’s credit facilities to SMEs have grown by 49% last year, which is the highest growth among local banks.” This, stressed Qumsieh, is due to the importance of these companies and their role as engines of job creation.
For his part, Dr. Jafari commended Capital Bank’s efforts to support and meet the needs of the SMEs sector. He added that the Jordan Loan Guarantee Corporation was adamant to work hand in hand with all local banks to help them create new specialized programs that would strengthen their offerings to their clients and provide them with the needed funding.
Guaranteeing renewable energy financing is a priority for the company due to the sector’s importance in mitigating the increasing burdens caused by high energy bills, and the effects they have on the customers and the Kingdom, said Dr. Jafari.