Jordan government guarantees all bank deposits
Jordanian Prime Minister Nader Dahabi announced Thursday that the government would guarantee all bank deposits in the country until the end of 2009, reports dpa.
"All bank deposits, without any ceiling, will be guaranteed by the government until the end of 2009," Dahabi told board chairmen and general managers of local commercial banks whom he met at the Central Bank of Jordan (CBJ).
Dahabi and CBJ governor Umayyah Touqan assured the bank executives that the country's banking system was not experiencing any liquidity shortage or any credit crisis.
Instead, they reported a liquidity surplus in the banking system of about 5.5 billion dinars (7.8 billion dollars).
The prime minister conceded that the world recession would "have negative effects" on certain Jordanian sectors, foremost exports, tourism and the money transfers of Jordanian expatriates.
However, Dahabi said that Jordan stood to gain from positive fallout from the recession in terms of lower oil prices and a lower inflation rate.