Kuwait backs Jordanian economy with USD one bln-worth deposit, loans
AMMAN-- Kuwait and Jordan signed on Thursday a memorandum of understanding (MoU) worth USD one billion to support the Jordanian economy.
The memo is part of Kuwait's contribution to honoring its pledges announced during Makkah summit that includes a deposit at Central Bank of Jordan estimated at USD 500 million and a loan program worth USD 500 million for five years.
The MOU was inked by Director General of Kuwait Fund for Arab Economic Development (KFAED) Abdulwahab Al-Bader and Jordan's Minister of Planning and International Cooperation Mary Kawar.
The two sides also witnessed the signing of an agreement between the fund and the ministry regarding rescheduling a Kuwaiti loan to Jordan estimated at USD 300.7 million to be paid back over a period of 40 years with one percent interest rates and a 15-year grace period.
Under the memo, Kuwait offers Jordan USD 100 million for each of the five years starting from FY (2019/2020) to help finance infrastructure projects, including the construction of schools in the Kingdom.
The aid package is provided to support Jordan's ailing economy, Al-Bader told KUNA after signing the MoU.
He stressed Kuwait's commitment to honoring its pledges declared in the quartet meeting held in Makkah last June.
During the meeting, the UAE, Kuwait and Saudi Arabia agreed to back Jordan with USD 2.5 billion to help the country overcome its economic crisis.
Also, Saudi Arabia's minister of finance Mohammad Al-Jadaan and UAE's Minister of State for Financial Affairs Obaid Al Tayer signed similar deals with the Jordanian government as part of the pledges.
The UAE inked a deal with Jordan to extend an economic aid package worth USD 833 million to stimulate economic growth in Jordan. The Jordanian government signed an agreement with the International Monterey Fund (IMF) in 2016 for three years on achieving reform programs. Under the deal, Amman imposed another tax on goods.
Jordan is suffering from an economic crisis and accumulated loans worth USD 40 billion which make up about 95.9 percent of GDP in 2017.