Minister of Finance Signs the fifth loan agreement provided by the Arab Monetary Fund
3/23/2017 12:05:00 PM
The fifth financing agreement between the Jordanian government and the Arab Monetary Fund was signed at the Ministry of Finance on Sunday with a value of (13.4) million Arab accounting Dinar, equivalent to about US $ 56 million. The loan was provided by the Fund to finance the funding needs of the budget.
This loan is the fifth of its kind. Four previous compensatory loans were signed with the Fund with a total value of 27.93 million Arab accounting Dinar.
The loan will be withdrawn in a single installment after signing this contract and the Fund will deposit the equivalent amount of the loan amount in Special Drawing Rights SDRs in the Government of Jordan account.
Consequently , the government of Jordan will commit to repay the principal of the loan within a period of (3) years from the date of withdrawal of the loan four equal installments payable at the end of every six months and the first installment shall be due after eighteen months from the date of withdrawal of the Loan (grace period).
The agreement was signed by Minister of Finance Omar Malhas on behalf of the Jordanian government in the presence of the Governor of the Central Bank of Jordan Dr. Ziad Fariz and Dr. Abdulrahman bin Abdullah Al-Humaidi, Director General and Chairman of the Arab Monetary Fund on behalf of the Fund.
The loan aims to support the Jordanian financial reform program to meet the challenges facing the Jordanian economy, namely the slow pace of growth of the global economy and the unfavorable situation in the neighboring countries, the European economy- Jordan's main trading partner, and its implications for foreign trade and payments.
The Arab Monetary Fund is considered one of the leading development partners in the Hashemite Kingdom of Jordan due to its role in supporting the economic and financial reform programs adopted by the Kingdom during the past years to achieve comprehensive and sustainable economic growth and to establish and strengthen the financial and banking infrastructure necessary to ensure the success of development plans in Different areas and to achieving their objectives.
The Kingdom close ties with the Arab Monetary Fund (AMF) enjoy a renowned status. The Fund provided Jordan with 22 loans with a total value of US $ 791 million. On the other hand, through the Arab Trade Financing Program, the Fund provided credit facilities to Jordan's foreign trade. The 15 Jordanian agencies accredited to the program concluded 64 credit line agreements with a total value of over US $ 980 million. The Hashemite Kingdom of Jordan also benefits from the trade promotion initiatives organized periodically by the Program. The total value of the Fund's support to the Hashemite Kingdom of Jordan is approximately US $ 1.8 billion.