Improving the Role of Eximbanks/ECAs in the OIC Member States
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country’s various sectors for export development and identifies specific medium term
operations with the best prospects for further support in the form of ECGE guarantees.
However, the extent of the government’s active involvement in linking ECGE’s activities to the
overall trade strategy appears to be weak. The Ministry of Trade and Industry (MTI) has no
representation on the board nor do they have any direct initiatives involving to ECGE, such as
directing exporters to ECGE, except through their Egyptian International Trade Point web portal,
where ECGE is listed as one of many insurers, rather than being highlighted as a specialist in
export credit. Moreover, ECGE has not managed to promote itself among large Egyptian
exporters giving room to ICIEC and Dhaman to fill the gap.
3.4.4 Jordan
Jordan Loan Guarantee Corporation (JLGC)
Description:
The Jordan Loan Guarantee Corporation (JLGC) was established in 1994 as a public shareholding
company initially to provide guarantees for SME loans. In 1997, JLGC took on the function of
Export Credit insurance and its capital was increased to JD 10 million (USD 14 million).
Its current mission is to enhance sustainable economic growth in Jordan by improving the credit
environment for economically viable SMEs and national exports by providing credit and loan
guarantees.
The Board of Directors is composed of seven members who serve for a period of four year after
which a new Board is elected. The Central Bank of Jordan (CBJ) appoints two of the members, of
whom one will be Chairman, as long as CBJ’s contribution to JLGC’s capital remains above 45%.
JLGC develops its own strategic plan, independent of the government. It approved a five-year
strategic plan in 2012 which outlines its medium term goals, of which one of the aims is to
“increase the company’s efficiency in loan and export credit guarantees, and to improve
underwriting systems and risk assessment, pricing and safe distribution of credit portfolios”.
In terms of its ECA business, JLGC offers some short-term (maximum 6 months) export credit
insurance and domestic credit insurance (in addition to its original programs providing SME
loan guarantee). Both export and domestic insurance provides 90% coverage. JLGC is also able to
insure L/Cs, which are issued in favour of Jordanian banks, allowing local banks to confirm L/Cs
with higher limits for Jordanian exporters so that they can export to new markets.
JLGC signed an Agency Agreement with ICIEC in October 2013 to make JLGC a fronting partner to
promote and introduce ICIEC’s export credit insurance products. In addition, JLGC signed a co-
operation agreement with Türk Eximbank in November 2014 for the purposes of developing
commercial co-operation as well as designed to help JLGC upgrade its knowledge and technical
skills.