Financial and insurance sectors in Jordan: the way forward National Conference Harnessing Services for Sustainable Development: Opportunities and Challenges for Jordan 21 – 22 September 2010.
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Financial and insurance sectors in Jordan: the way forwardNational ConferenceHarnessing Services for Sustainable Development: Opportunities and Challenges for Jordan21 – 22 September 2010
IMF Comprehensive Financial Development Index (CFDI) ranks Jordan second after Lebanon in the MENA region
=> A support in line with importance of the SerSec
=> Resilient sector positioned for growth
Framework: Euro-Mediterranean Charter for Enterprise / JSMP FSSD
The Banking Window offers three key services
Aimed at facilitating access to finance for services SMEs
Increasing company’s readiness (systems)
Access to competitive bank / equity financing (financial intermediation)
Better use of and access to collateral / improvement of financial terms(negotiation).
In-house advisory and coaching
Production of credit report
External technical assistance
Introduction to JEDCO network of financial institutions (MOU)
Cabinet decision: establish 2 Funds
Venture Capital and Developt
Co-sponsored by GoJ and the European Investment
Championing a VC tax friendly environment in line with international competition
Selecting managers according to strict process
Assisting in structuring and fund raising
Early Stage Fund:
10-15 Meuros - GoJ / EIB pre- committed 3 Meuros - 30% to 60% of min.
Capital for Growth Fund:
30 to 50 Meuros (min. 20) - GoJ / EIB pre-committed 7 Meuros
35% of minimum size
JSMP LT loan guarantee facility.
60% default coverage<Euro75k
Delegation to banks (small dossiers)
Implementing body: JLGC (under discussion)
Assessment of the situation in Jordan showing huge gap
Assistance to the development of the business plan
Study tour (Lebanon and France)
Follow-up of EUR6m fund
Need to ensure high impact
Incentives for banks
Fast decision process
Why not burning the fund?
Stakeholder committee focusing on SME financing
Fed with practical surveys (sector needs, international practices, innovative instruments)
Proves to be efficient (Turkey, Lebanon, Morocco)
Recommendations at all levels
Advisor for Gvt. and donors finance
Identify a hosting body for the initiative
Concept note drafted and validated
Preliminary list of feeding studies (e.g. Factoring)
Difficulties in finding proper hosting body