...

Jordan buys back 2.4 billion dollars of its debts from Paris Club

Business Materials 30 March 2008 22:03 (UTC +04:00)

( dpa )- The Jordanian government on Sunday signed agreements with 10 member states of the Paris Club for creditor countries under which it bought back 2.4 billion dollars of its debts at a discount rate of 11 per cent.

The accords were signed with Canada, Italy, Belgium, the United States, 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 per cent its total external debt which the Central Bank of Jordan put at about 7.5 billion dollars 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."

Latest

Latest