Amman, Jordan, October 21, 2015—IFC,
a member of the World Bank Group, and the Association of Banks in Jordan
(ABJ) unveiled today a set of banking industry guidelines designed to help
indebted businesses get back on their feet, part of an effort to promote
economic growth across the country.
The guidelines, which have been endorsed by the Central Bank of Jordan,
will make it easier for financially-troubled firms to reach an agreement
with creditors outside of the court system. The guidelines will give viable
businesses valuable breathing room, allowing them to re-organize and emerge
from the process stronger than before, preserving the jobs and rights of
“These guidelines will minimize the cost and the time associated with
the settlement of indebted businesses, and therefore, increase the recovery
rates for creditors, which will strengthen the creditors’ confidence to
retrieve their money. This will consequently improve the access to credit
and encourage the growth of small and medium-sized enterprises.” says
Musa Shehadeh, ABJ Chairman of the Board.
In Jordan, settling a bankruptcy case through the court system can take
up to three years, which ties up potentially productive assets and acts
as a drain on both businesses and creditors. The guidelines are expected
to shorten the settlement time to less than one year.
“An efficient insolvency framework is vital to fostering a strong business
environment and driving economic growth,” says Ahmed Attiga, IFC Country
Manager in Jordan. “It protects viable businesses, preserves jobs, and
puts valuable capital back to work.”
The guidelines were developed as, part of IFC’s Debt Resolution and Business
Exit Program. The program helps the government of Jordan increase the efficiency
and effectiveness of its insolvency proceedings both inside and outside
of the court system.
The initiative is part of IFC’s wider strategy in Jordan, which aims to
reduce regulatory burdens, increase access to finance, and improve the
country’s business environment. The project is supported by the State
Secretariat for Economic Affairs, Switzerland.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence, to create opportunity where it’s needed most. In FY15,
our long-term investments in developing countries rose to nearly $18 billion,
helping the private sector play an essential role in the global effort
to end extreme poverty and boost shared prosperity. For more information,