Germany has agreed to convert just over $11 million of Jordan's $400 million debt with Berlin, a fraction of what Amman was hoping to secure, the official media reported Monday.
State television and Petra news agency said the decision was taken by German Chancellor Gerhard Schroeder in talks with King Abdullah II and Prime Minister Ali Abu Ragheb during a four-hour visit Monday to the kingdom.
Germany will wipe off 25 million marks ($11.36 million) from the overall debt as part of a debt-swap agreement with Jordan, Petra and state televisions said.
The money will be reconverted into investments involving the water sector, they said. No further details were available and Schroeder did not mention the deal at a brief press statement with Abu Ragheb before leaving for Syria.
Schroeder had pledged to help Jordan come to terms with more than $7 billion in foreign debt during a meeting with Abdullah in Germany in May.
Amman was hoping Berlin would scrap $50 million of its $400 million debt to Germany.
Germany is Jordan's top European trade partner. It sold the kingdom goods worth $286.8 million in 1999, compared with just $12.5 million worth of goods imported from Jordan.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)