The British Government has rescheduled almost one third of all Jordanian debt owed to the UK. The agreement is worth approximately $312 million, and will help to alleviate the burden of debt on Jordan’s budget, by reducing debt interest payments until 2008.
This accord has been signed as part of a special agreement reached by the Paris Club creditors in July last year, which aims to help Jordan break out from the cycle of debt rescheduling once and for all.
The UK has a long history of supporting Jordan’s efforts to reduce debt through a series of debt re-scheduling, debt cancellation and debt swap agreements. Most recently, in January 2001, the Governments of Britain and Jordan signed a debt-swap agreement worth $ 125 million, which aims to convert debt into investment and business schemes in Jordan.
The total amount of debt owed to the UK under all current Jordanian Debt Agreements is $650 million. This debt is purely commercial debt. All development loans, worth $65 million, were cancelled in 1995. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
