Saudi Arabia, Kuwait, UAE deposit over $1bn in Jordan Central Bank

October 5, 2018 Off By Web Desk

Saudi Arabia, Kuwait, and the United Arab Emirates have placed over $1 billion in deposits at the Central Bank of Jordan and committed $500 million in budget support over five years as part of a $2.5 billion package to shore up the kingdom’s struggling economy, a Jordanian government source said.

The package also includes $600 million in credit guarantees by the three Gulf countries that will help Jordan secure cheap World Bank credit and other financings for much-needed infrastructure projects.

Kuwait was the first to place $500 million in the Central Bank while another $330 million was received on Thursday from Saudi Arabia, the source added.

Finance ministers of Saudi Arabia, UAE, and Kuwait signed on Thursday with their counterpart in Jordan documents pertaining to the procedures agreed upon to implement the Makkah Summit Agreement signed, the Saudi Press Agency reported.

The Makkah Summit called by Custodian of the Two Holy Mosques King Salman to discuss support for Jordan’s economy on June 10 resulted in an aid package totaling $2.5 billion.

The Makkah summit to support Jordan comes in the backdrop of the initiatives of King Salman to stand by Arab countries that are exposed to crises as well as a continuation of the Kingdom’s policy of supporting its allies in hours of need. The UAE and Kuwait quickly reacted to the invitation of King Salman to hold a summit to help Jordan overcome economic hardships.

As part of implementing the landmark agreement aimed to help Jordan implement austerity measures which had sparked massive protests, Saudi Minister of Finance Mohammed Al-Jadaan, UAE Minister of State for Financial Affairs Ubayd Humaid Al-Tayir, and Kuwaiti Minister of Finance Naif Falah Al-Hajjraf met with high ranking Jordanian officials in Amman on Thursday.

During the visit, the ministers held a meeting with Jordanian Prime Minister Omar Al-Razzaz, Finance Minister Ezzedin Kanakriyah, Minister of Planning and International Cooperation Dr. Mary Kamel Kawar and Governor of Central Bank of Jordan Dr. Ziad Fariz. During the meeting, they reviewed fraternal relations of Jordan with the three states and discussed the economic status of Jordan and the suitable mechanisms to support the Jordanian government’s efforts in order to achieve economic and financial stability.

Speaking on the occasion, Al-Razzaz lauded the Saudi, Kuwaiti and UAE support to Jordan and its aspirations towards growth and prosperity.

On their part, the finance ministers affirmed their states’ firm stances towards achieving economic stability in Jordan in order to realize aspirations of the Jordanian people. They emphasized that the signed arrangements will contribute to easing the pressures on public finances, strengthening financial position and sustainability in addition to implementing a number of vital development projects and stimulation of growth and job creation.

The deposits at the Central Bank of Jordan will support the strengthening of its financial position, easing pressure on the Jordanian dinar and achieving more stability in its exchange rate, they added.

Jordan’s key role in protecting geopolitical stability in the Middle East already makes it one of the highest per capita recipients of foreign aid in the world, according to figures from USAID, the US aid agency.

Source: International Islamic News Agency