The Housing Bank, the most widespread bank in the Kingdom, has signed a framework agreement with the Export–Import Bank of Korea (KEXIM Bank) to establish the Interbank Credit Facility in Jordan, which will have lasting positive implications for the Jordanian economy as well as trade relations with Korea. The project will entail an inception budget of USD 130 million.
KEXIM Bank is the official export credit agency of South Korea and plays a critical role in the country's export-led economy by providing loans, financing mega projects, and thereby facilitating economic cooperation with other countries. The Interbank Credit Facility is a finance package offered by KEXIM Bank to foreign banks in the form of a credit line that can be utilized by Housing Bank to make loans to its local clients.
The partnership with Housing Bank will leverage Housing Bank's ever-growing financial network throughout Jordan to streamline trade and the exchange of funds between the two countries. The framework agreement will allow for easier exports of goods and services from Korea to Jordan, the procurement of essential equipment by Jordanian importers working on reconstruction projects in neighboring countries, and the purchase of Korean-made goods through flexible financing options. Housing Bank will also be able to issue letters of credit on behalf of its clients in favor of Korean exporters.
"We are proud to join this partnership agreement with KEXIM" commented Housing Bank CEO, Ammar Al-Safadi. "This agreement will have a far-reaching positive impact on trade relations between Jordan and Korea, allowing local businesses to conduct large-scale financial operations in an easy and efficient way. We are honored that KEXIM Bank chose Housing Bank to undertake this essential and large-scale project."
Al-Safadi further noted that such agreements and the streamlined trade routes they establish have become even more integral following the COVID-19 pandemic and the deleterious effect it has had on economies globally, particularly for resource-limited countries like Jordan. He noted that the availability of quality financing options will enable Jordanian importers and other businesses to conduct their transactions in a more flexible manner, paving the path for the post-COVID economic recovery.
It is a great pleasure to conclude this agreement with the Housing Bank, which is a leading bank in Jordan with high credit worthiness and the largest client basis. This agreement is meaningful in that the Credit Line is to be KEXIM's sole Interbank Credit Line in the Middle East. The Credit Line will lead to the expansion of trade volumes in various industrial sectors including automobile, electronics, and chemical products between the two countries. We also expect that the Credit Line to promote the companies' active participation in Reconstruction Projects that are taking place in the neighboring countries. We have no doubt that the Housing Bank is the most optimal partner to bring about these results.