JSC chairman calls for setting up of 'trade court'
Chairman of the Jordan Securities Commission (JSC) Bassam Saket called for the establishment of a “Trade Court” to rule on commercial disputes in Jordan.
Saket, who was speaking at a seminar held at the Abdul Hameed Shoman Centre late Monday, said such a court will tackle disputes related to investment procedures and cases resulting from trading on the Amman Stock Exchange (ASE).
Jordan lacks courts that are specialized in dealing with trade disputes. Usually ordinary courts handle commercial problems.
“The Trade Court should be well-qualified to tackle cases related to investments in Jordan in a way that would ensure justice for all parties concerned,” Saket told the gathering.
The JSC's official indicated that among the reasons that led to the humble performance of the Jordanian bourse is the “restricted number of government bonds on the ASE.”
Saket, a former minister, said that government bond market's share amounts to one percent compared to 60 percent in the United States.
He said that companies, which buy these bonds, tend to keep the bonds in their custody until their term is over.
Saket said that foreign ownership in the ASE amounts to 42 percent, where 36 percent is owned by Arab investors and the remaining six percent is owned by non-Arabs.
He indicated that most of these investments are in the banking and financial sector followed by the industrial, insurance and services sectors respectively.
Saket said recent steps by the Central Bank of Jordan to lower interest rates was not fully utilized by the commercial banks in the Kingdom.
“The response of the banks to the lower rates was not up to our expectations and did not increase investments in the first and second markets and also failed to activate the capital market,” he added. — (Jordan Times)
By Tareq Ayyoub
© 2000 Mena Report (www.menareport.com)