1. The Microfinance In Jordan

2. ???? What is the collection average rate of the Microfinance firms rate of the Microfinance firms in Jordan? in Jordan?

3. The Microfinance in Jordan Introduction: I would like to present a brief general presentation about the Microfinance in Jordan. I would like to present a brief general presentation about the Microfinance in Jordan. First I will talk about the Microfinance in the Arab world and how did it reach specifically to Jordan. Then, I will mention the microfinance companies in Jordan: their policies, organizational structure and their difficulties. And finally I will explain how these difficulties have been solved by Delta Informatics.

4. Professor Muhammad Yunus Recipient of Nobel Peace Prize in 2006, recognized for his work in poverty and the empowerment of poor women since 1976. He created the Grameen Bank, a micro-credit institution that provided small amounts of working capital to the poor for self- employment. Grameen Bank has loaned out over 6.5 billion dollars to the poorest of the poor. Muhammad Yunus is a member of the Board Directors for several companies in Jordan. Recipient of Nobel Peace Prize in 2006, recognized for his work in poverty and the empowerment of poor women since 1976. He created the Grameen Bank, a micro-credit institution that provided small amounts of working capital to the poor for self- employment. Grameen Bank has loaned out over 6.5 billion dollars to the poorest of the poor. Muhammad Yunus is a member of the Board Directors for several companies in Jordan.

5. Sanabel The Microfinance network of Arab countries Sanabel was established in 2002 when 17 representatives from seven Arab countries gathered in Tunisia to launch a network designed to serve microfinance institutions in the Arab world. Sanabel was established in 2002 when 17 representatives from seven Arab countries gathered in Tunisia to launch a network designed to serve microfinance institutions in the Arab world. Sanabel organizes an annual conference of Arab Microfinance practitioners every year in a different Arab country. Sanabel organizes an annual conference of Arab Microfinance practitioners every year in a different Arab country. The first Sanabel’s annual conference was held in the Dead Sea in Jordan in 2003. "Shaping the Industry's Future" was the theme of the conference. During this three-day conference, microfinance practitioners and experts, donor agencies, investors and government officials came together to discuss the development of best practice microfinance in the Arab region. The first Sanabel’s annual conference was held in the Dead Sea in Jordan in 2003. "Shaping the Industry's Future" was the theme of the conference. During this three-day conference, microfinance practitioners and experts, donor agencies, investors and government officials came together to discuss the development of best practice microfinance in the Arab region.

6. Sanabel’s annual conferences YEARCOUNTRYTHEME 2003Jordan Shaping the Industry’s future 2004Egypt Microentrepreneur awards 2005Morocco From Microcredit to Microfinance in the Arab Region 2007Yemen Serving the Poor: 10 million clients by 2010 2008Tunisia Advancing Arab Microfinance: Greater Social Impact through Inclusive Financial Services 2009- May Lebanon Human Capital in Microfinance: People, Passion and Value

7. Members & Partners of Sanabel Membership in the network is limited to the founders and any MFI who applies for membership and fulfills certain criteria. Membership in the network is limited to the founders and any MFI who applies for membership and fulfills certain criteria. Today Sanabel has expanded and has members in Egypt, Iraq, Lebanon, Mauritania, Morocco, Palestine, Saudi Arabia, Sudan,Syria, Tunisia, Yemen and Jordan. Today Sanabel has expanded and has members in Egypt, Iraq, Lebanon, Mauritania, Morocco, Palestine, Saudi Arabia, Sudan,Syria, Tunisia, Yemen and Jordan.

8. Sanabel’s Members in Jordan 1- AHLI Micro Financing Company -1999. 1- AHLI Micro Financing Company -1999. 2- Jordan Micro Credit Company 2- Jordan Micro Credit Company (Tamweelcom)-1999. (Tamweelcom)-1999. 3-Microfund For Women -1994. 3-Microfund For Women -1994. 4- Middle East Micro Credit Company -2000. 4- Middle East Micro Credit Company -2000. 5- National Micro Finance Bank 5- National Micro Finance Bank (Al-Watani) -2005. (Al-Watani) -2005. 6- Development & Employment Fund 6- Development & Employment Fund (Reyada) -1989. (Reyada) -1989. 7- Finca Jordan-2007. 7- Finca Jordan-2007.

9. General Information about the companies CompanyN.Branches Active Clients Loan Process Loan’s period Loan Amount Ahli85200 2 weeks 6 -36 Months 500- 15000 $ Mmco65000 3 weeks 6 – 36 Months 500- 15000 $ Jmcc1644000 1 week 2 – 48 Months 300 – 40000 $ Mffw1733000 1 week 2 – 48 Months 200 – 30000 $ Def1540000 1 month 6 – 72 Months 500 – 75000 $ Nmb815000 2 weeks 6 – 36 Months 300 – 15000$ Finca713500 1 week 2 – 36 Months 300 – 15000$

10. Totals: By end of 2008, the total sum of Active Clients = 160,000. By end of 2008, the total sum of Active Clients = 160,000. By end of 2008, the total amount of loans that were declined = 100.000.000 JD. By end of 2008, the total amount of loans that were declined = 100.000.000 JD. By March 2009, the amount of new loans = 20.365.000 JD. By March 2009, the amount of new loans = 20.365.000 JD.

11. Services Provided by the companies Financial Services: Loans Loans Interest rate average for a Loan depends on the policy and product: 5-20% per year. Interest rate average for a Loan depends on the policy and product: 5-20% per year. Non Financial Services: Life Insurance Life Insurance Show rooms Show rooms Buzzards Buzzards Business linkage Business linkage Training courses Training courses Trips for ideal clients.(as a compensation) Trips for ideal clients.(as a compensation)

12. 2 Types of Loans Individual Loans: Men & Women Men & Women Business owners Business owners House hold Loan House hold Loan Existing projects Existing projects Start up projects (Grace period up to 6 months) Start up projects (Grace period up to 6 months) Seasonal loan (Ramadan) Seasonal loan (Ramadan) Vehicles Loans Vehicles Loans Agriculture Loans Agriculture Loans Group Loans: For women only For women only 2-5 persons 2-5 persons House hold loans: knitting House hold loans: knitting Agriculture loans: cows, sheep, camels.. Agriculture loans: cows, sheep, camels..

13. The Islamic Product Only 2 companies in Jordan provide a loan as an Islamic Product. Only 2 companies in Jordan provide a loan as an Islamic Product. 1. DEF 2. NMB 3. FINCA (In the future) The Islamic Product is named “Morabha”.

14. Al Morabha This product provides people who would prefer to apply the Islamic way since they do not agree to take a loan with a certain percentage of interest. They can choose the Morabha. This product provides people who would prefer to apply the Islamic way since they do not agree to take a loan with a certain percentage of interest. They can choose the Morabha. Morabha includes in it’s contract 3 subjects: the company, the trader and the client. Morabha includes in it’s contract 3 subjects: the company, the trader and the client. The company buys the product from the trader and resale it to the client when the purchase price is known and must be agreed upon in advance. The profit is around( 6%-7%). The company buys the product from the trader and resale it to the client when the purchase price is known and must be agreed upon in advance. The profit is around( 6%-7%).

15. Vision & Mission -T-T-T-The vision and the mission of the microfinance companies in Jordan are quit similar in their targets. -T-T-T-The vision is to improve the low income and productive poor people’s social and living standards through micro and small sized enterprises. -T-T-T-The mission is to provide the financial and non financial services to the Jordanian's lowest income so they can create jobs, build assets and increase their income.

16. Difficulties of the companies: 1. Competition 2. Similarity in their products 3. Division by areas. (North, Center and South) 4. Duality of a client.

17. Duality of a client The client can be so “clever”: go to a company to ask for a loan and right after he signs the contract, he goes to another company and asks for another loan. This is what we call Duality. I In order to stop this duality, all companies had to sign an agreement at the Ministry of Planning in accordance with Delta’s company in 2007

18. Delta Informatics Delta is an informatics company, that provides to all companies an online contract of an active client: In a case a client has signed an agreement with one company, can’t go to another company unless he has finished his active payments. Delta is an informatics company, that provides to all companies an online contract of an active client: In a case a client has signed an agreement with one company, can’t go to another company unless he has finished his active payments. Since it was established in Amman in 1993, Delta Informatics has helped the firms achieve a competitive advantage through the following issues: Since it was established in Amman in 1993, Delta Informatics has helped the firms achieve a competitive advantage through the following issues: 1. Reduced costs 2. Increased productivity 3. Higher revenues

19. The Answer to my question at the beginning of my presentation: The average Of the collection rate is: is: 92% - 99%. 92% - 99%.

20. How is it so high??? The Answer is: The Organizational Structure in all firms.

21. Organizational Structure of a company Board of Directors External Auditor General Manager Internal Auditor

22. Organizational Structure of a company General Manager Operation Department Finance Department M.I.S Department Marketing Department H.R Department

23. Organizational Structure of a company Operation Department Operation Manager Credit Manager Branches Managers Supervisors Loans Officers

24. Conclusion Jordan is well known as a supportive and active client of the world’s Microfinance. Jordan is well known as a supportive and active client of the world’s Microfinance. Microfinance in Jordan is specialized with it’s organizational structure. Microfinance in Jordan is specialized with it’s organizational structure. Their Vision and Mission are to create and build strong financial projects and products in Jordan. Their Vision and Mission are to create and build strong financial projects and products in Jordan. Companies know how to overcome their difficulties and they reduce poverty in Jordan and that’s how they accomplish their goal. Companies know how to overcome their difficulties and they reduce poverty in Jordan and that’s how they accomplish their goal.

25. Thank you for your presence Samer Abu Dalo