Consultancy for Supporting the Development and Employment Fund within the GIZ Programme “Promotion of the Microfinance Sector in the MENA Region”

2018-11-30 - 2019-04-30

In July 2015, GIZ initiated a technical support consultancy mission to DEF, a Jordanian state-owned institution to supervise and provide technical assistance to DEF to achieve their timely indicators. Objective: The consultancy mission aims to provide DEF with policies and procedures, institutional study, identify gaps, ensure policies and procedures are in place, providing continuous technical support and onsite coaching and workshops. Once provided, DEF will be able to continue providing its financial services using international best practices and will be able to compete with major microfinance institutions in Jordanian market.
The main activities and deliverables included: Assessing the DEF’s current status of the credit and delinquency policies. In this respect, gaps between existing policies and procedures in comparison to those required to achieve the DEF’s future required objectives (in terms of lending and NPL management) are to be analysed and updates / adjustments/ changes proposed, where deemed necessary, against DEF’s background, capabilities and capacities. Update recently developed monitoring and collection policies (partially in overlap with activity #1) for direct lending, with a focus on: Accountability of Branch Managers for “their” portfolio, Strengthening monitoring and collection practices in branches, Development of the role of loan officers in implementing loans over the whole loan cycle, Delinquency management of non-performing loans, Establishing and formulating special procedures and committees to monitor and collect arrear loans, in particular for those in arrears for 90 days and longer, Imposing penalties on arrear loans. Conduct an awareness session for senior and middle management of DEF, including branch managers. Providing indications and a training concept on credit and delinquency management with a strong focus on collection management for a national training company.