JLGC Boosts Support for SMEs in 2023 With JD312mln

Amman: The Jordan Loan Guarantee Corporation (JLGC) significantly enhanced its support for the small and medium enterprise (SME) sector in 2023, offering guarantees for approximately 2,391 SME projects, with a collective value of JD312 million. The figures underscore JLGC's commitment to fostering economic growth and entrepreneurship in Jordan. In a detailed breakdown provided by JLGC, it was noted that the corporation extended guarantees to 256 startups, injecting JD18 million into the burgeoning sector last year. This strategic move is aimed at bolstering the foundation of the Jordanian economy by nurturing new enterprises. Amid the ongoing efforts to mitigate the economic fallout from the COVID-19 pandemic, JLGC continued to offer guarantees to SMEs as part of the national program orchestrated in collaboration with the Central Bank of Jordan. The program, which was extended until the end of April 2023, benefited 552 companies with financing totaling JD109.4 million, demonstrating a robust support mecha nism for businesses grappling with the pandemic's impacts. The corporation also reported substantial activity within its microenterprise support program, backing 533 projects with guarantees worth approximately JD3.6 million. This initiative reflects JLGC's dedication to empowering microenterprises, a critical sector for job creation and economic diversification. Further expanding its support, JLGC played a pivotal role in facilitating trade and local sales through its export and local sales credit guarantee program. In 2023, the program covered 5,736 shipments, with a guaranteed value of around JD187.7 million, including 2,466 export shipments and 3,270 local sales shipments. This extensive coverage not only aids in sustaining business operations but also encourages the expansion of Jordanian products into new markets. Looking ahead to 2024, JLGC anticipates increased participation in its export credit guarantee program, especially following the initiation of the Industrial Support and Development Fund p rogram in the latter half of 2023. Forty-six Jordanian industrial exporters received approval to benefit from the program last year, with subsidies covering up to 35 thousand dinars per company annually for insurance costs, including guarantee fees and external buyer inquiries. JLGC celebrated a 22% growth in total revenues for 2023, amounting to JD6.8 million, compared to JD5.6 million in 2022. This financial upturn was attributed to an increase in both operating and investment revenues, highlighting the corporation's effective management and strategic initiatives. The corporation's total shareholders' equity saw an increase to JD41.3 million at the end of 2023, from JD39.5 million the previous year, with total assets rising to JD740 million from JD715 million. JLGC's net profits after tax also rose to JD1.8 million in 2023, up from JD1.2 million in 2022, marking a successful fiscal year. In line with its strategy to reinforce its capital base, JLGC's Board of Directors recommended against dividend distr ibution for the 2023 fiscal year. A call has been made for the General Assembly to convene for its thirtieth regular meeting on March 26, 2024, to discuss future directions and strategies. Source: Jordan News Agency