Figures released by the Central Bank of Jordan indicate that credit facilities extended by commercial banks operating in Jordan totaled JD16.6bn at the end of the first quarter of 2012, constituting an increase of 10.3% from JD15.1bn at the end of the first quarter of 2011 and a rise of 5% from JD15.8bn at end-2011. The resident private sector accounted for 87.8% of the total, slightly down from 90% at end-March 2011, followed by the non-resident private sector with 6%, the central government with 4.1%, public entities with 2.1%, and financial institutions with 0.1%. Foreign currency lending accounted for 11% of total lending, down from 12% at the end of the first quarter last year.
The distribution of lending by sector shows that general trade represented JD3.8bn, or 23% of the total relative to 25% at end-March 2011. It was followed by construction with JD3.5bn, or 21% of the total, down from 21.6% at end-March 2011; industry with JD2.4bn, or 14.2% of overall lending; public services & utilities with JD1.7bn or 10% of the total; transportation services with JD543.3m or 3.3% of credits; tourism, hotels & restaurants with JD496.2m, or 3% of the total; financial services with JD378.2m or 2.3% of credits; and agriculture with JD256.3m, or 1.5% of overall lending. Further, other lending accounted for JD3.5bn, or 21% of total credits, of which JD409m were extended to buy shares. In parallel, loans & advances totaled JD14.1bn of overall credit, followed by overdrafts with JD2.2bn, and discounted bills with JD310.4m.
Source: Central Bank of Jordan, Byblos Research