Jordan, Britain Sign Debt Swap Agreement
Jordan signed a debt-conversion deal with Britain on Tuesday under which the kingdom will reduce its external debt while boosting investment, a statement by the British embassy was quoted as saying by the Jordan Times newspaper.
The statement said the deal offers investors the opportunity to invest in Jordan at a favorable rate by converting Jordanian debt owed to Britain.
Britain's export credits guarantee department would make available £90 million ($131.4 million) for the scheme of Jordan's debt for sale at a discounted rate to potential investors, on condition that the debt is then re-sold by the investor to the Jordanian government to fund investment in the country, said the statement.
In 1995, Britain wrote off all its development loans to Jordan, estimated at £46 million ($67.2 million), to bolster the Kingdom's economic reform program.
But the program fell short of initial expectations due to sluggish economic performance, a stagnant peace process and the damaging effects of continued sanctions on Iraq, according to analysts -- Albawaba.com
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