EBRD provides new credit line to Jordan’s Housing Bank

BAKU, Azerbaijan, April 7. The European Bank
for Reconstruction and Development (EBRD) has signed an agreement
to provide up to $75 million (67.9 million euros) to Housing Bank
for Trade and Finance (HBTF) in Jordan, Trend reports.

The funds will be used for on-lending to micro, small and
medium-sized enterprises (MSMEs) across the country.

The new facility is aimed at expanding access to finance for a
key segment of Jordan’s private sector that remains underserved,
particularly outside the capital, Amman. It will support Housing
Bank in increasing its MSME lending portfolio and reaching new
clients, contributing to economic resilience and job creation.

MSMEs are considered a cornerstone of Jordan’s economy but
continue to face financing challenges, particularly in the context
of a slight decline in GDP growth from 2.6% to 2.4% in 2024.

This marks the third agreement between the EBRD and Housing
Bank. It follows a $15 million loan in 2023, co-financed with the
Green Climate Fund under the Green Economy Financing Facility, and
a $50 million trade finance facility in 2021 to support export and
import activities.

Commenting on the agreement, Matteo Patrone, EBRD Vice President
for Banking, said the new facility strengthens the existing
partnership and demonstrates a shared commitment to supporting
MSMEs in Jordan.

Housing Bank CEO Ammar al-Safadi highlighted that the credit
line will allow the bank to expand its lending portfolio, enhance
financing quality, and increase liquidity, reinforcing its role in
supporting economic development.

Founded in 1973, Housing Bank is a universal bank offering
services to retail, corporate, public sector, and SME clients
across Jordan and through its international network. Since
beginning operations in Jordan in 2012, the EBRD has invested more
than 2.3 billion euros across 75 projects in the country, with 70%
of those investments directed toward the private sector.