Jordan receives financial aid from Saudi Arabia, UAE, Kuwait

Jordan

Published: 2018-10-06 12:52

Last Updated: 2018-10-06 15:30


Photo courtesy of the Royal Hashemite Court (RHC)
Photo courtesy of the Royal Hashemite Court (RHC)
Roya News Source

Following the Mecca Summit, which was held in June earlier this year, His Majesty King Abdullah II received the Ministers of Finance of Saudi Arabia, Kuwait, and the United Arab Emirates (UAE) on Thursday, October 4, 2018.

The ministers, who travelled to Jordan in an official visit, met with His Majesty to discuss finalizing the previously-agreed-upon $2.5 billion aid-package that their countries are to give Jordan.

The amount aims to ease the Kingdom’s financial burdens, boost its economic stability, and attract investment opportunities from abroad.

The economic aid package is set to fund various Jordanian projects, provide credit guarantees, and supply deposits in the Central Bank of Jordan (CBJ). The package, which is scheduled to be implemented within the span of five consecutive years, is agreed to be as the following:

  • Deposits at CBJ : an amount of $1.16 billion
  • Development loan: $550 million
  • Credit guarantees to the World Bank: $200 million
  • Grants supporting the Kingdom’s budget: $500 million.

UAE contributed with $333.3 million as deposit in CBJ, $250 million as a five-year grant to support the budget, $50 million as developments loan, and $200 million as guarantees to the World Bank.

Saudi Arabia contributed with $250 million as a five-year grant to support the Kingdom's budget and $333,3 million as guarantees to the World Bank.

Kuwait contributed with $500 million as deposits, $500 million as a five-year soft loan ($100 million per year).