For the first time in the SEMED region, the EBRD is co-financing a transaction under the Risk Sharing Framework (RSF) in support of the private sector in Jordan, helping to increase much-needed access to finance during the current economic crisis caused by the Covid-19 pandemic.
Under its Risk Sharing Framework, the EBRD is providing an unfunded guarantee of US$ 5 million to Bank Al Etihad in support of one of the leading garment manufacturers and exporters in Jordan.
The EBRD Risk Sharing Framework is a strategic programme dedicated to supporting and developing local private companies in the countries where it invests. The facility is designed to allow the EBRD to share partner banks’ exposures to local enterprises through either funded or unfunded risk participation.
The EBRD began its operations in Jordan in 2012 and is helping to support sustainable energy, finance private enterprises and promote infrastructure reform. Since the start of its operations in the country, the Bank has invested almost €1.5 billion across 50 projects in Jordan, of which 73 per cent are in the private sector.