Saudi Arabia Grants Jordan Grace Period for $114 Million Loan

Published December 17th, 2018 - 09:05 GMT

The agreement aims at assisting Jordan to alleviate the burden of public debt service and is part of Saudi Arabia's efforts to support Jordan and help it overcome its economic crisis. (Shutterstock)
The agreement aims at assisting Jordan to alleviate the burden of public debt service and is part of Saudi Arabia's efforts to support Jordan and help it overcome its economic crisis. (Shutterstock)

The Jordanian government and the Saudi Fund for Development (SFD) signed an agreement on Sunday, under which the SFD will reschedule 19 loans owed by the Jordanian government worth $114 million for 20 years, including five years grace period.

The agreement was signed by Minister of Finance, Izzeddin Kanakrieh, and SFD Vice Chairman and Managing Director, Khalid Bin Sulaiman.

The agreement aims at assisting Jordan to alleviate the burden of public debt service and is part of Saudi Arabia's efforts to support Jordan and help it overcome its economic crisis.

Both sides also signed an agreement to enable the government to spend directly on projects financed by the Saudi Arabia's grant provided under the Gulf grant to Jordan with a ceiling of $20 million to be fed when the account balance reaches $5 million through an account in the Central Bank of Jordan.

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The agreement was signed by Minister of Planning, Mary Kawar, Minister of Finance, Izzeddin Kanakrieh, and Governor of the Central Bank of Jordan, Ziad Fariz from the Jordanian side, and SFD's Khalid Bin Sulaiman

This agreement aims to provide liquidity as quickly as possible and avoid challenges associated with providing financial ceilings in the general budget to ensure the implementation of projects as planned through the opening of the circular account with the Central Bank of Jordan.

Under the new mechanism, the SFD will transfer the balance of the remaining Saudi grant under the Gulf grant to the central bank's treasury account.


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