Program for enhancing an enabling environment for small and medium sized enterprises in the Hashemite Kingdom of Jordan 2021
The AMF, pursuant to the Board of Executive Directors’ resolution number (22) of 2021, extended a loan to the Hashemite Kingdom of Jordan with the amount of AAD 13.290 million (equivalent to about US$ 56 million), representing 90 percent of the country’s share in the Fund’s paid-up capital in convertible currencies. The loan was extended within the framework of the Small and Medium Enterprise’s (SMEs) Conducive Environment Support Facility, to assist the Jordanian government to implement a program to enhance SMEs business environment over the period (October 2021 - October 2022).
The loan supports the Jordanian government efforts to create an enabling environment for SMEs, in order to accelerate the pace of inclusive and sustainable economic growth, as SMEs represent one of the most important drivers of economic development in light of the important role they play in strengthening supply chains and creating jobs.
The program is based on four pillars: enhancing SMEs' access to finance and financial services; strengthening the legal, regulatory, and supervisory frameworks for SMEs activities; developing financial technology applications; and enhancing human and statistical capacities.
As for enhancing SMEs access to finance and financial services, the program aims to increase access to finance and financial services by implementing a set of measures to enable SMEs to access and benefit from financial services, especially youth and women projects, entrepreneurs and vulnerable groups, in order to enhance financial inclusion and achieve social development goals, as well as accelerating inclusive and sustainable economic growth and job creation.With respect to strengthening the legal, regulatory and supervisory framework for SMEs, the program aims to strengthen the regulatory and legal frameworks in terms of enhancing comprehensiveness and consistency, in a way that regulates effectively the activities of SMEs, and ensures the integration of the roles played by different bodies related to SMEs. With regard to the development of financial technology application, the program aims to encourage the use of modern financial technologies to improve the quality of services provided by financial institutions and facilitate the access to them; reduce the cost of obtaining financing and financial services and expand the scope of their use, especially in geographical areas where it is difficult to access such services through tradition means; in addition to taking advantage of the role played by financial technologies in providing alternative sources of financing to SMEs. Regarding the enhancement of human and statistical capacities, the program aims to continue training efforts and raise capacities of bank employees involved in financing SMEs, in addition to strengthening financial education, and organizing media campaigns to educate entrepreneurs about opportunities to benefit from financing and build their capacities. In this respect, the program also aims to update data and information related to SMEs to serve policy makers and planners in banks and all concerned parties, and to provide economic data related to SMEs in a consistent and comprehensive manner.
Program for enhancing a conducive environment for small and medium enterprises in the Kingdom of Morocco 2021
The AMF extended a loan to the Kingdom of Morocco, with the amount of AAD 12.748 million (equivalent to about US$ 54 million), representing 31 percent of the country’s share in the Fund’s paid-up capital in convertible currencies, under the Small and Medium Enterprise’s Conducive Environment Support Facility, to support the implementation of a program covering the period (November 2021 - November 2022).
The program came within the framework of supporting the Moroccan government efforts related to enhancing SMEs business environment, through improving SMEs access to finance and financial services and developing payment systems, while increasing their spread and coverage, in the context of promoting financial infrastructure.
The program is based on three pillars: enhancing SMEs access to finance and financial services, strengthening the guarantee system, and developing databases and credit information systems. The pillar of enhancing SMEs Access to financial Services aims to enable the target groups, especially youth and women in rural areas, as well as entrepreneurs, to access financial services, by implementing a set of measures that include completing legal frameworks related to crowdfunding, undertakings for the collective investments in transferable securities (UCITS), and microfinance, in addition to strengthening financing efforts within the framework of various initiatives and funds, strengthening the inclusive insurance framework, and accelerating the application of financial technology. As for the pillar of strengthening the guarantee system, it aims to enhance the role of credit risk guarantee directed to small and medium enterprises, by strengthening the guarantee institution, developing and diversifying its products, continuing efforts to strengthen the guarantee system and expanding its coverage to include innovative projects, graduates, youth and women projects in various fields, thus enhancing access of all segments of the society to finance. Regarding the pillar of developing databases and credit information systems, it aims to avail data and information related to the small and medium enterprises sector, and financial institutions such as banks, exchange companies, payment and electronic money transfers companies, microfinance companies, and insurance companies, to serve policy makers and planners for this sector. The pillar also aims to enhance the efficiency of the credit information systems through a set of measures to increase access to credit information related to small and medium enterprises and diversify credit information services, as well as expanding their coverage.
Program for enhancing an enabling environment for small and medium enterprises in the Arab Republic of Egypt 2018.
The Arab Monetary Fund (AMF), pursuant to the Board of Executive Directors’ resolution number (13) of 2018, extended a Loan to the Arab Republic of Egypt with the amount of Arab Accounting Dinar (AAD) 87.7 million (about US$ 368 million), to be withdrawn in two tranches, representing 100 per cent of its share in the Fund’s paid-up capital in convertible currencies, under the framework of the Facility of Supporting Conducive Environment for Small and Medium Enterprises (SMEs). The loan supported the implementation of a program to enhance business environment for SMEs, covering the period (June 2018 – June 2019). The first tranche of the loan, with the amount of AAD 52.26 million, was withdrawn following signing of its agreement. The second tranche of the loan, with the amount of AAD 30.08 million, was withdrawn following Fund’s monitor to the implementation of the agreed program.
The program was centered around four pillars represented in enhancing SMEs' access to finance and supporting financial inclusion, strengthening SMEs financing guarantee system, developing databases and credit information systems, and enhancing training and capacity development.
The goal of enhancing SMEs’ access to finance was to increase access to finance and financial services by implementing a set of measures aimed at enabling all segments of society to access and benefit from financial services, especially youth, women, entrepreneurs, and vulnerable groups, to enhance financial inclusion, achieve social development goals, accelerate inclusive and sustainable economic growth, and create job opportunities. As for the pillar of strengthening SMEs financing guarantee system, it aimed at enhancing the role of the Credit Risk Guarantee Company and expanding the coverage and scope of guarantee to cover part of SMEs risks, in a way that supports the initiatives adopted by the Central Bank to encourage banks to provide the necessary and appropriate finance to SMEs. As per the pillar of developing databases and credit information systems, it aimed at updating data and information related to SMEs to serve policy makers and planners in banks and all other related parties, provide the opportunity to add new banking products and services that are consistent with SMEs activities, in addition to improving the efficiency of using credit information and providing data related to SMEs in a consistent and comprehensive manner. Regarding the pillar related to enhancing training and capacity development, it aimed at enhancing training efforts and improve capacities of bank employees involved in financing SMEs, in addition to strengthening financial education, organizing media campaigns to raise entrepreneurs’ awareness in a way that helps them prepare feasibility studies and organize exhibitions to market their products.
Program for enhancing an enabling environment for small and medium enterprises in the Republic of Tunisia 2018.
The Arab Monetary Fund (AMF), pursuant to the Board of Executive Directors’ resolution number (23) of 2017, extended a Loan to the Republic of Tunisia with the amount of AAD 18.532 million (about US$ 78 million), to be withdrawn in two tranches, representing 100 per cent of its share in the Fund’s paid-up capital in convertible currencies, under the framework of the Facility of Supporting Conducive Environment for Small and Medium Enterprises (SMEs). The loan supported the Tunisian Government efforts in preserving reform gains achieved over the past years and implementing a program to enhance business environment for SMEs, covering the period (December 2017 - December 2018). The first tranche of the loan, with the amount of AAD 9.266 million, was withdrawn following signing of its agreement. The second tranche of the loan, with the amount of AAD 9.266 million, was withdrawn following Fund’s monitor to the implementation of the agreed program.
The program was based on three pillars represented in developing and supporting the role of the Tunisian Guarantee Company and expanding its scope of work, enhancing financial inclusion through improving SMEs’ access to finance and financial services, and strengthening the role of the Microfinance Supervisory Authority on microfinance associations and institutions.
The goal of supporting the role of the Tunisian Insurance Company and expanding its scope of work was to enhance the Tunisian government’s policy in supporting SMEs and ensure the realization of its initiatives aimed at encouraging banks to provide the necessary and appropriate finance to SMEs. These goals were planned to be achieved through expanding the coverage of Guarantees for Funds affiliated to the Tunisian Guarantee Company and developing appropriate mechanisms to strengthen SME loans guarantee system. With regard to enhancing financial inclusion through improving SMEs’ access to finance and financial services, it aimed at increasing access to finance and financial services for all segments of society, especially youth, women, entrepreneurs and vulnerable groups, in remote areas, to achieve social development goals, accelerate inclusive and sustainable economic growth, and create job opportunities. As for the pillar of strengthening the role of the Microfinance Supervision Authority on associations and microfinance institutions, it aimed at strengthening governance frameworks in microfinance institutions, ensuring the implementation of transparency standards related to SMEs, protecting consumers of financial services and providing them with products and services appropriate to their needs and ability to pay.
Program for enhancing an enabling environment for small and medium enterprises in the Republic of Sudan 2018.
The Arab Monetary Fund (AMF), pursuant to the Board of Executive Directors’ resolution number (1) of 2018, extended a Loan to the Republic of Sudan with the amount of AAD 22.8 million (about US$ 96 million), to be withdrawn in two tranches, representing 100 per cent of its share in the Fund’s paid-up capital in convertible currencies, under the framework of the Facility of Supporting Conducive Environment for Small and Medium Enterprises (SMEs). The loan supported the Sudanese Government to continue its efforts to create a conducive environment for SMEs to play its role in accelerating inclusive and sustainable economic growth. The loan specifically supported the implementation of a program to enhance business environment for SMEs, covering the period (February 2018 - February 2019). The first tranche of the loan, with the amount of AAD 13.68 million, was withdrawn following signing of its agreement. The second tranche of the loan, with the amount of AAD 9.120 million, was withdrawn following Fund’s monitor to the implementation of the agreed program.
The program was centered around five pillars represented in strengthening the structure of legislation, laws, and regulatory frameworks, enhancing financial inclusion, developing the credit rating and information system, developing and strengthening capacities, and providing financial and tax incentives to SMEs.
The goal of strengthening the structure of legislation, laws, and regulatory frameworks was to provide institutional and regulatory requirements that ensure conducive environment for the SME sector. This includes strengthening the strategic planning framework, providing databases for sound planning, developing effective policies, in addition to developing legal frameworks that enable creating a clear and unified definition of projects in a way that improves their targeting and increases the effectiveness and efficiency of the services provision. As per the pillar of enhancing financial inclusion it aimed at strengthening the financing and guarantee system, and enhance the spread of financial services, especially in remote areas to improve SMEs’ access to finance and banking services. Regarding the development of credit rating and information system, it aimed at enhancing the quality and availability of credit information, through advanced and comprehensive system works within an effective regulatory and supervisory framework, in a way that ensures access to credit information, reduces risks, and supports efforts of providing finance, guarantee and various financial services. The pillar of capacity development and enhancement aimed at improving skills of entrepreneurs in developing financial plans, conducting feasibility studies and other skills appropriate to their business, in addition to enhancing capacities in financial institutions, administrations, and government units concerned with SMEs. With respect to the pillar of providing financial and tax incentives, it aimed at enhancing the competitiveness of SMEs, Improving their access to markets through fiscal policy, in terms of taxes and expenditures.