Circular to Microfinance Companies in the Kingdom Regarding Support Measures for Clients Affected by the Coronavirus Pandemic

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

Reference No.: 28/1/4869 Date: 4/9/1441 AH Corresponding to: 27/4/2020 AD

Circular to Microfinance Companies Operating in the Kingdom

Greetings,

Continuing the efforts of the Central Bank of Jordan aimed at addressing the repercussions and risks of the spread of the novel coronavirus, and with the objective of mitigating potential economic impacts on your clients—individuals and micro/small enterprises—we emphasize the necessity of providing support to clients through the following measures:

First: Support for Individuals and Projects/Companies Affected:

1. Postponement of installments for loans/financing granted to clients affected by this crisis for the months of April and May 2020. The company shall not charge any additional interest/returns, commissions, or fees for this. The company may, at its discretion, postpone remaining installments or make appropriate arrangements regarding them upon the client's request. This shall not negatively affect the clients' credit records with CIB (Credit Bureau Jordan), and these arrangements shall remain in effect until the end of the current year.
2. Clients affected may continue to repay their debts as usual if they wish.
3. Review pricing policies and consider the possibility of reducing interest/returns and all other costs incurred by clients—including existing clients—to obtain loans/financing and all services provided by the company, particularly those provided through electronic payment channels.
4. Direct new loans/financing to productive projects to contribute to maintaining the continuity of the economic cycle across various sectors.

Second: Customer Service:

1. Ensure the existence of a clear strategy for communication with stakeholders and customers, and enhance the capacity of the customer service unit and complaints unit, raising their readiness to answer any inquiries.
2. Intensify awareness and education campaigns regarding digital channels, the importance of remote communication, and social distancing.

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CENTRAL BANK OF JORDAN البنك المركزي الأردني

Third: To enhance the company's ability to continue providing its services and fulfilling its role in meeting client needs, we emphasize the following:

1. Continue reviewing the business continuity plan and ensure all employees are familiar with it. Activate the role of the crisis management entity and ensure continuous communication between executive management and the Board of Directors/Company Management Committee and its subsidiary committees to enhance governance and ensure speed in making necessary decisions.
2. Continue reviewing the liquidity management plan and ensure its effectiveness and comprehensiveness in covering scenarios for dealing with such crises.
3. Monitor the development of the current loan portfolio, paying special attention to the at-risk portfolio according to different economic sectors and geographical regions. Monitor changes in customer behavior and churn rates where necessary.
4. Follow up on developments and challenges associated with this crisis, determine necessary scenarios, and assess their impact on capital levels and other financial safety indicators.
5. Enable employees to work remotely where necessary and ensure the existence of the necessary secure infrastructure for this purpose.

The Central Bank will continue to monitor all developments and take appropriate measures to limit the impact of the repercussions of this crisis on the national economy, the microfinance sector, and its clients.

Please accept our highest regards,

[Signature] The Governor Dr. Ziad Friez

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P.O. Box 27, Amman 11118, Jordan • Phone: 06 4630301 • Fax: 06 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo