|Jordan Loan Guarantee Corporation (JLGC) | |
Export Credit Agency (ECA) in Jordan
About Jordan Loan Guarantee Corporation
The Jordan Loan Guarantee Corporation (JLGC) was established as a public shareholding company on 17 May 1994 as part of the Loan Guarantee project, founded by the United States Agency for International Development in 1989, and managed by the Industrial Development Bank until September 1993.
Initially, the company’s aim was to provide the necessary guarantees to facilitate the financing of SMEs and expand Jordan’s private commercial sector. However, in 1997, its remit expanded to include the Export Credit Insurance program, designed to encourage Jordanian businesses to export their products by providing insurance to cover the commercial and non-commercial risks to which their exports could be exposed to.
In 2016, its capital holdings were increased to raise the applicable credit limits and develop new guarantee instruments for SME loans and provide a better range of Export and Domestic Credit Guarantees.
The aim is to enable Jordanian exporters to grow their export sales to foreign markets that they work with, without the need for L/C’s or advance payment, by providing payment facilities to face competition among foreign vendors.
The credit insurance covers:
- Commercial risks:
- Non-payment by the buyer
- Insolvency of the buyer
- The refusal of the buyer to accept the shipped goods
- Non-commercial risks:
- Government restrictions on currency conversion
- Any government decisions & regulations that prevent the entry of goods, and wars and civil disturbance.
Our insurance policy is considered a guarantee tool (loss payee) for Jordanian banks, which enables the policyholder to discount the invoices at his bank in order to maintain liquidity.
A summary of Jordan Loan Guarantee Corporation
Products and services offered by Jordan Loan Guarantee Corporation
- Export credit guaranatee
- Insurance against the risk of non-payment
Raw Materials – From tobacco to spices, gold to bronze, commodities represent a large proportion of our trade finance portfolio
Finished Goods – Our innovative structuring capabilities allow us to put together complex finance structures, even if the end goods are finished
Metals – From scrap metal to alloys, we help traders and distributors access trade, receivable or PO finance for iron, steel and non-ferrous metals