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    Reference: 20210090
    Release date: 26 July 2021

    Promoter – Financial Intermediary




    Synthetic local currency loan in Jordanian Dinar (JOD) to fund the microfinance activities of the Jordan Microfinance Company ("Tamweelcom") in Jordan.

    Additionality and Impact

    Access to finance is generally a major constraint in Jordan, with rates below the regional average. Jordanian banks channel credits mostly to a small number of relatively large and established firms, and micro enterprises have even more difficulties to receive financial support. At the same time, microfinance institutions (MFIs) try to compensate that financing gap by lending to the smallest enterprises and self-employed, with a focus on vulnerable groups such as women or youth. However, the outreach of MFIs remains insufficient considering the needs of the most vulnerable clients. Yet, the current microfinance market in Jordan can be characterised as very competitive resulting in a very high level of price sensitivity among clients. The EIB loan to Tamweelcom will be provided in synthetic local currency and supported by an EU grant to reduce the FX hedging costs. Therefore, the institution does not have to pass-on higher (hedging) cost to the final beneficiaries.

    As Tamweelcom is not authorized to accept customer deposits, external funding is extremely important and mandatory to continue its business activity. Currently, Tamweelcom's funding mainly depends on local borrowers. Hence, the proposed EIB loan will positively contribute to the diversification of funding sources but even more improve the maturity profile of the company. Most other lenders have granted a 3 years loan whereas the EIB loan will have a term of 5 years. The signalling effect of the EIB loan should also facilitate Tamweelcom's access to additional international lenders further supporting access to finance for small and micro enterprises.


    This synthetic local currency loan aims at supporting the microfinance activities of Tamweelcom in Jordan and promoting access to finance for micro and small enterprises, particularly targeting women and youth.


    Proposed EIB finance (Approximate amount)

    EUR 6 million

    Total cost (Approximate amount)

    not applicable

    Environmental aspects

    Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.


    Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.


    Signed - 16/12/2021


    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Jordan Credit lines