Corona Update: Central Bank Loans for companies and institutions during Corona

Apr 3, 2020 by AmwalCom

Central Bank Loans for companies and institutions 💵 during the Corona Pandemic!

  The central bank of Jordan (CBJ) 🏫 has specific financing programs for certain sectors 👨‍⚕️ (manufacturing 👷‍♂️, tourism 😎, agriculture  🌴, renewable energy 🌞, IT 📱, transportation 🚴‍♀️, health 👨‍🔬, technical education 👩‍🏫, and engineering consulting 👩‍💼) where they are lend money at a preferred interest rate through banks.

Up until now, the central bank has offered around 700 million JDs for these companies.  

Nowadays and due to the Corona pandemic, the CBJ has decided that the interest rate of these loans need to decrease. The CBJ has decreased the interest rate of these loans given to the banks from 1.75% to 1% inside Amman and from 1% to 0.5% in the other governorates 🙌.  Banks are to decrease the interest of the loans given to these companies with the same percentage accordingly.  

The financed period is to be increased as well to 10 years, 2 of which is a grace period and the CBJ has included the export industry 🚅 to benefit from these programs as well.  

In addition to that, the CBJ has introduced a new program with 500 million JDS to support professionals and SMEs. This is mainly for companies to keep their employees and to cover for theهق operational and capital expenses.

These loans are for 3 years with an interest rate of 2% and a grace period of 6 months-1 year.💃 Also, the Jordan Loan Guarantee Corporation (JLGC) will guarantee up to 85% of the loan (p.s. they usually guarantee up to 70%)