Villages Development Bank Unveils New Credit Rating Methodology for Municipalities

Amman: The Cities and Villages Development Bank launched a new credit rating methodology for municipalities in cooperation with the United States Agency for International Development's (USAID) Municipalities Program. The bank's general manager, Osama Azzam, stressed during a workshop organized by the bank, that the developed methodology enhances the financial transparency of municipalities and stimulates sustainable local development. He said that this step is in line with the bank's vision aimed at empowering municipalities by providing the necessary tools to improve their financial performance and attract investments. For her part, the bank's finance manager, Nihaya Shamayleh, said that the methodology is based on a comprehensive assessment of several aspects, including the financial situation, good governance, transparency, and the ability to repay debts, adding that the methodology took into account the specificity of municipalities and was based on the best international practices in the field of cred it rating. She explained that the methodology will enable municipalities to identify strengths and weaknesses in their financial performance, and then develop action plans to improve this performance, which will enhance investor confidence and attract more funding for local development projects. The bank has held several meetings and field visits to municipalities, in addition to an in-depth study of financial and administrative reports, to collect the necessary data to develop the methodology. Source: Jordan News Agency