[Economic analysis of loan repayments at the Agricultural Credit Corporation's branches in Mafraq and Amman [determination of kind of loans based on their different duration; borrowers characteristics; factors affecting repayment of short and medium term loans; repayment ratio]]

This study is a critical analytical review of the development of the ACC loans for Amman and Mafraq branches. In 1987 the repayment ratio for the Amman branch was only 38.3% and 40.5% for the Mafraq branch. These low repayments directly affected the availability of sufficient funds for new loans and created difficulties in obtaining new laons from abroad to finance the ACC credit programmes and also distorted plans to develop lending programs. A random sample of borrowers at Mafraq and Amman branches was chosen, composed of 36 repayers, 68 non-repayers for Mafraq and 17 repayers, 65 non-repayers for Amman. The main factors which may affect the repayment ratio have been discussed and divided into two main groups. The first group was analyzed statistically by using Chi-Square to get the correlation factors such as: borrowers age, scientific qualifications, source of funding of the borrowers share in the investment funding of expensions, type of the project, place of residence, causes of losses. The second group included factors which may affect the repayment ratio and for which Yule-equation was used to measure the correlation factors like actions taken against non-repayers; do the borrowers read the loan contract?; do they know the repayment dates?; are they notified on that day?; suitability of the grace period, interest rates; dates of repayment; size of the loan; time-span of the loan. The results of the study revealed that repayment of short and medium term loans were affected by: At Mafraq - suitability of interest rates to borrowers; profitability of the project; availability of new loans from ACC; loan size (sufficient or not); sources of funding expansions of the project; ability to borrow to repay; sources of funding borrowers share in the project. For Amman - availability of new loans from ACC, again sufficiency of loan size and suitability of interest rates; profitability of the project and loan time-span as well as occurrence of seasonal repayments at the same time and finally, follow-up of ACC to borrowers to repay