Amman – Jordanian banks have survived the international financial crisis well, said, Marwan Awad, the chairman of the Association of Banks in Jordan on Monday (9th), during a meeting with Arab Brazilian Chamber of Commerce president Salim Taufic Schahin, in Amman.
“We have not had and do not expect problems due to the crisis,” said Awad, who is also the CEO at Jordan Ahli Bank, the third largest in the country. According to him, the losses of banking institutions in Jordan are no greater than 40 million Jordanian dinars (US$ 56.5 million), with total assets of banks in the country totalling 30 billion dinars (US$ 42.3 billion).
The executive said that the central bank in the country has a conservative policy and acts correctly without, however, losing its “open mind” characteristic to solve market problems. This, in his evaluation, was important to maintain stability in the local system.
According to him, the banks in Jordan concentrate deposits that total 20 billion dinars (US$ 28.2 billion) and loans total 13 billion (US$ 18.3 billion) in total, which grants the system great liquidity. “It is a very liquid system, we can greatly boost the financial volume,” he pointed out.
He said, however, that there is not much demand for loans in the country and added that local institutions have means to finance international transactions, including those with Brazil.
According to Awad, foreign trade is the sector that concentrates most financing with by Jordanian banks, followed by services and industry. It does not matter whether he [the client] plans to export or import, we can do it,” he pointed out. “We are ready to finance the trade and services and have infrastructure for this,” he guaranteed.
Schahin pointed out that the banking system of Brazil is also healthy and recommended greater contact between institutions in both nations, an initiative that may be fostered by the Arab Brazilian Chamber. He pointed out that the volume of credit in Brazil is around 50% of the Gross Domestic Product (GDP) and that there is demand for more.
“We must show our businessmen more, that is the objective of our mission,” said Schahin, who is leading a delegation of Brazilian businessmen in Jordan. The meeting also included the director of the Arab Brazilian Chamber, Mustapha Abdouni, the ambassador of Jordan to Brazil, Ramez Goussous, as well as Nour Al Hmoud, from the Jordan Investment Board (JIB).
Awad also pointed out that the banking system in his country is very open, with 60% participation of foreign capital, and is considered safe. “We have had no problems for 15 years, so confidence is great,” he added.
*Translated by Mark Ament
