Liwwa) and Sanadcom.

This is a landmark transaction in the MENA region, allowing alternative MSME lenders; Liwwa and Sanadcom to access sustainable funding through a local tier 1 bank. It mobilises larger volumes of local funds that would otherwise not get to these alternative lenders.

that often remain underbanked due to high risks - both perceived and real involving absence of collateral and credit history, among others. The NASIRA guarantee programme takes away this hurdle by agreeing in advance to share possible credit losses.

SMEs directly, and the smaller enterprises by means of partnerships with local Fintechs and other alternative SME lenders as a way of reaching out to all layers of the MSME ecosystem.

To support and strengthen Capital Bank of Jordan’s efforts to reach the underserved MSMEs, FMO will provide a NASIRA loan portfolio guarantee covering loans provided to young and COVID-19-affected entrepreneurs. The underlying loans will be used for income-generating activities.

Speaking about the guarantee programme, Financial Institutions Director at Capital Bank Jamal AlQudah said, “As a leader in the field of SME financing, Capital Bank has a deep understanding of the important role played by the sector in the national economy, we express our gratitude to FMO and the European Commission for their support. This funding, which will bolster the sector in the wake of the exceptional circumstances brought about by the coronavirus pandemic, will allow companies to maintain their liquidity and remain financially agile. This will, in turn, lead to sustainable development through private-sector growth and employment opportunities.” 

EU Ambassador to Jordan Maria Hadjitheodosiou said: “The European Union is very pleased with this transaction between FMO and Capital Bank of Jordan, with the support of the guarantee provided by the European Fund for Sustainable Development. Our excellent cooperation with FMO under their flagship initiative NASIRA, helps promoting and supporting financial inclusion, not only in Jordan but also in other countries in the region“

“With the guarantee programme to Capital Bank of Jordan we aim to unlock funds to support MSMEs. At the same time, by covering Liwwa and Sanadcom's portfolio with the NASIRA programme, we intend to contribute to the growth of a sustainable local financial ecosystem and mobilise local savings,’’ says Huib-Jan de Ruijter, Chief Investment Officer a.i. of FMO.