Cabinet approves capital increase for Central Bank to JD 100 million

The Cabinet has taken decisive steps to strengthen Jordan’s financial framework and public transport sector during a meeting on Wednesday, Jordan News Agency (Petra) reported.

One of the key decisions made was to increase the capital of the Central Bank of Jordan (CBJ) from JD 48 million to JD 100 million.

This move is a response to the bank's expanding asset portfolio, which reached JD 19.3 billion by the end of 2024, with foreign assets accounting for JD 16.8 billion, representing 86.9 percent of total assets. This development follows a notable rise in Jordan's foreign reserves, now totaling USD 21 billion.

The capital boost of JD 52 million will be allocated from the general reserve to the capital account, adhering to Article 8 of the Central Bank of Jordan Law No. 14 of 1971 and its amendments. This marks the CBJ's fourth capital increase in its history, with previous increments occurring in 1982, 1993, and 2013.

In addition to the capital increase, the Cabinet approved a 50 percent exemption on licensing and permit fees for public transport operators for 2025, a measure anticipated to save the sector around JD 1.25 million. This exemption applies to large and medium public transport buses, taxis, and service vehicles regulated by the Land Transport Regulatory Commission (LTRC), although services under the Greater Amman Municipality (GAM) and the Aqaba Special Economic Zone Authority (ASEZA) are excluded. Operators who have already paid the fees for 2025 will be eligible for refunds.

These initiatives aim to provide crucial support to the public transport sector amidst economic challenges, geopolitical uncertainties, and fluctuating fuel prices. Furthermore, the government approved the creation of a Passenger Transport Support Fund, designed to enhance public transport services.

The fund will focus on financing sector development, supporting transport workers, promoting smart transport systems, and modernizing the vehicle fleet through grants and loans. It aims to improve accessibility for university students, individuals with disabilities, and the elderly while encouraging increased workforce participation, particularly among women.