General Questions

 Question about JMRC :-

Question (1) :   When JMRC was incorporated?

Answer :  JMRC is a public shareholding company. It was established in mid 1996 based on direction of the Government, with the cooperation of the International Bank for Reconstruction and Development and the support of the Central Bank of Jordan.   

Question (2) : What is the objectives of JMRC?
Answer : The following are the most important objectives, which JMRC is seeking to achieve:-

-   Develop and improve the  housing finance market in the Kingdom by enabling banks and other financial institutions to increase their participation in housing loans lending.

-   Promote and develop the capital market in the kingdom through issuing corporate bonds in the local capital market, and thus contribute to increasing investment instruments in the market.

-  Provide middle and long- term finance for Islamic banks and financial institutions    

Question (3): Whom are the targeted customers to borrow from JMRC?
Answer: JMRC is extending Loans only to banks and financial institutions.

Question (4): What are the conditions and criteria which shall apply to a financial institution to benefit from JMRC Refinance loans?
Answer: A Refinance loan may be granted to a financial institution that:-

1) Is a privately owned entity, duly established and operating under the laws of the Hashemite Kingdom of Jordan provided that the JMRC shall have determined that such financial institution: -       
-   Is in compliance with the legal and regulatory requirements applicable to its operations, including all applicable banking or financial or company laws, capital adequacy requirements, and monetary regulations.
-   Has had its audited financial statements, for its fiscal year preceding the year within which its respective Refinance Loan Agreement is to been entered into, audited by independent auditors with the report there of being unqualified.
-   Has a sound financial structure and satisfactory financial performance, and the organization, management, staff, and other required resources for carrying out its operation efficiently.
-   Has adequate technical and administrative capacity and satisfactory operating policies and procedures for appraisal and monitoring of a mortgage Loan portfolio and for carrying out its activities to be undertaken under the Housing finance and Urban Reform Project Agreement signed between the International Bank for Reconstruction and Development (IBRD) and JMRC.

2) Is a newly established financial institution which has demonstrated, on the basis of an institutional development plan satisfactory to JMRC and IBRD, that it has the organization, management, staff and other resources required to comply with the requirements set forth in (c) and (d) in paragraph (1) above.

Question about JMRC Bonds:-                

Question (1) : Is JMRC gets the approval from Jordan Securities Commission to issue its bonds?                  
Answer: Yes.

Question (2) : How JMRC is using the proceeds of selling its bonds?
Answer: JMRC mainly is using the proceeds of selling its bonds to extend middle and long 's term loans to banks through refinancing housing loans extended by these Banks.

Question (3) : What are the benefits to Investors in JMRC bonds?
Answer: The benefits to Investors in JMRC bonds are as follows:- 

. JMRC's bonds are risk-weighted at (20%) for the purpose of calculating the capital adequacy ratios of banks.
. JMRC's bonds are eligible to serve as liquidity reserve holding of banks for the purpose of calculating the legal liquidity ratios as required by the Central Bank of Jordan .
. JMRC's bonds are tradable in the local capital market.

Question (4) : What are the main risks of investing in JMRC bonds?
Answer: The main risks of investing in JMRC bonds are as follows:-

                                - Fluctuation of Interest Rates:

Fluctuation of interest rates in the market affect prices of bonds; an increasing in market interest rate, means a decreasing in bond’s price and a decreasing in market interest rate means an increasing in bond's price.

- Liquidity:

The liquidity of JMRC bonds and their tradability will be subject to legislation, laws regulations and the conditions prevailing in the market especially in terms of interest rates fluctuation.
- Payment:

JMRC ability to pay interests and nominal amounts on the maturity of its bonds depends on the amounts due from banks borrowed from JMRC.

Question (5) : How is JMRC issuing its bonds bullet or amortized? 
Answer: JMRC is issuing its bonds bullet or amortized, in accordance with its cash flow and investors need.

Question (6) : Is the interest on JMRC bonds fixed or variable? 
Answer: The interest on JMRC bonds could be fixed or variable according to the investor need.

Question (7) : Are JMRC bonds guaranteed? 
Answer: JMRC bonds are not guaranteed by any government party or any other specific housing real estate mortgage to the account of their holders. However, the bonds are guaranteed with the company's assets including loans to refinance housing loans extended to financial institutions qualified to borrow from the company against collaterals of real state deeds first class dully indorsed to the company. Remaining balance of these bonds is not less than 120% of the company's loan balance at the end of each quarter of the year in each case, and along the whole period of the loan.
Question (8): How is JMRC selling its bonds? 
Answer: JMRC is selling its bonds through private or public subscriptions.    

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