(Amman – June 2017) Bank of Jordan has recently signed a cooperation agreement with the Jordan Loan Guarantee Corporation (JLGC) aimed at guaranteeing financing for renewable energy and energy efficiency projects.

The agreement was signed by Mr. Saleh Hammad the Acting General Manager and Dr. Mohammad Al Ja’fari the Director General of Jordan Loan Guarantee Corporation (JLGC).

The Bank will grant loans to SMEs, individuals, and households of up to JD350,000, while the “JLGC“will guarantee 70% of the financing, according to the arrangement. The soft loans are designed to reduce energy consumption and cost for both citizens and companies.

The arrangement follows an earlier strategic cooperation agreement between the Bank and Jordan Renewable Energy and Energy Efficiency Fund (JREEEF)/the Ministry of Energy and Mineral Resources that was concluded in March 2017.

In line with the agreement, the Bank will grant soft loans for financing the installation of renewable energy and energy efficiency systems.

“We are pleased to cooperate with the (JLGC) in financing renewable energy initiatives”, said BoJ Acting General Manager Saleh Hammad during the signing ceremony. He explained that the Bank continues to offer innovative financing solutions to meet market and client needs, adding that BoJ is keen to provide financing for energy-saving schemes and to support environmental projects and causes.

Dr. Mohammad Al Ja’fari, JLGC Director General noted that the Corporation continues to look for financing sources for energy efficiency and energy saving initiatives. Such financing is needed to meet the Kingdom’s urgent need for investing in renewable energy projects, he clarified, adding that the current loan guarantee program for energy-related schemes is being implemented in cooperation with JREEEF. “We seek to expand the program’s beneficiaries to include households, schools, hospitals, as well as the public and private service and industrial sectors,” and ultimately cut Jordan’s energy bill, concluded Al Ja’fari.