Operation Mechanism

JMRC provides medium and long-term finance for banks and financial institutions operating in the Kingdom through refinancing housing loans granted by these institutions to citizens according to JMRC’s policy which has specified the principles and criteria that ought to be available in the borrowing financial institution and in the housing refinance loan.

To guarantee the loan obtained by the bank from the company, the bank endorses its first preferred property mortgage deeds pertaining to the housing loans granted by it in favor of the company at the specialized registry department while the remaining values are not less than (120%) of the value of JMRC’s loan granted to the bank, provided that the housing loans granted by the bank shall not be under any installments due and that the bank to transfer alternative mortgage deeds throughout the life of JMRC’s loan to the bank.

In accordance with JMRC’s credit policy the bank is also permitted to provide temporary collaterals until it can provide the company with necessary mortgages deeds. The most important of such temporary guarantees are The Jordanian Government bonds or bonds guaranteed by the Government, treasury bills and JMRC’s bonds and also authorization to debit the bank’s account in the central bank of Jordan in favor of JMRC.

JMRC’s loans to banks shall be repaid in one installment on its maturity date and the interest shall be paid semiannually. In special cases, the principal loan and loan interests are paid periodically.

JMRC also adopted a mechanism to grant financial leasing companies owned by banks loans to refinance real estate loans, the value of loans granted to these companies during 2022 was (16) million JD.

Loans granted to banks enable these banks to increase its participation in the housing finance market and minimize the risks of mismatching between the sources and uses of its funds and encourage competition among these banks, which would eventually be in the interest of citizens.

The company provides the funds necessary for its lending activity from the proceeds of selling its bond issues in the local capital market with sizes and ranges corresponding to the refinancing loans and with the company’s cash flows and at fixed or variable interest rates for each interest period during the period of the bond - and as the case may be - whether by bidding or specifying Prior to interest rate through private placement or public offering, and issues can be extinguished in one batch or in batches that coincide with the company’s cash flows, after obtaining the necessary approval from the Securities Commission. The company plays the role of issuance

manager to support the bonds issued by it or through specialized bodies in issuance management.