The International Finance Corporation (IFC), a member of the World Bank Group, has announced that it will assist Jordan in developing a legal and institutional framework for secured lending, with the goal of reducing the cost of lending and expanding the availability of credit to small and medium enterprises (SMEs). A recent press release from IFC states that it is advising Jordan’s Ministry of Industry and Trade (MIT) as it develops legislation to regulate secured lending – a type of lending involving the use of moveable assets, such as equipment and inventory, as collateral for a loan.
Dr Ahmed Attiga, IFC resident representative in Jordan, said, “Enactment of the new legislation will be a first critical step in developing a secured lending framework in Jordan. To ensure this framework is complete, IFC Advisory Services in [Middle East and North Africa], in partnership with the Ministry of Industry and Trade of Jordan, will develop an effective collateral registry and will help build the capacity of local financial institutions to introduce secured lending.”
Rula Hadaddin, MIT’s representative, said, “Legal reform to enhance the rights of lenders in movable collateral will promote greater access to finance for small and medium sized enterprises in Jordan. Adopting the Law on Secured Transactions will create an important foundation for protecting the rights of banks, microfinance institutions, and leasing companies, which will encourage these financial institutions to provide lending secured by movable properties.”
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that ‘collectively determine its policies, and approve investments.’ In fiscal year 2009, its new investments totaled USD 14.5 billion.
By Matthew Fox, Research Assistant
Sources and Addition Resources:
International Finance Corporation (IFC): Press Release, 15 July 2010: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/1C366F4B026C4FF18525776100563F6B?OpenDocument
MicroCapital Universe: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: FINCA Microfinance Jordan, JOHUD Partner to Fund Community Businesses
- MICROCAPITAL BRIEF: Akbank Selling $300m in Bonds to DFC, AIIB, IFC – Half to Support Women-owned Businesses in Turkiye
- MICROCAPITAL BRIEF: EIB Loans $214m to Sicredi for Solar Panels for Households, SMEs in Brazil
- MICROCAPITAL BRIEF: World Bank’s IDA Lending $15m to Djibouti for Low-income Housing Finance, Policy Reform
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
