Jordan buys back $2.4 bn of debts

March 31st, 2008 - 12:00 am ICT by admin  

Amman, March 30 (DPA) The Jordanian government Sunday signed agreements with 10 member states of the Paris Club for creditor countries under which it bought back $2.4 billion of its debts at a discount rate of 11 percent. The accords were signed with Canada, Italy, Belgium, the US, Germany, Britain, France, Spain, Switzerland and Austria.

Jordan did not sign a similar agreement with Japan because its constitution prohibits the selling of debts.

“The accord is an important step towards reducing the burden of the external indebtedness on the state’s budget and represents part of the country’s comprehensive economic reform programme,” Prime Minister Nader Dahabi said during the signing ceremony, which took place at the Dead Sea resort.

He said the agreement would enable Jordan to trim by 13 percent its total external debt, which the Central Bank of Jordan put at about $7.5 billion at the end of November 2007.

Finance Minister Hamad Kasasbeh told a press conference that the agreement, which came after six months of negotiations with creditor countries, involved only non-concessionary export loans.

He said that the accord would improve Jordan’s credit standing and “enhance confidence in the Jordanian economy”.

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