AMMAN — Members of the
Social Democratic Party (SDP) have
submitted a memorandum to the government in which they highlight that banks are
raising interest rates on existing loans, causing the debt and installment
values to exceed citizens' capacities and expectations.
اضافة اعلان
They also observe that recent bank profit announcements show
a disproportionate increase that doesn't align with the
economic situation,
growth rates, and the prevailing recession in industrial, agricultural, and
real estate sectors. This suggests that banks are
controlling financial policies, enabling them to evade recession impacts while burdening citizens as
consumers and producers. This not only shields bank profits but amplifies them due
to citizens being compelled to borrow with high interest rates. This negatively
affects the national economy and citizens' purchasing power, Jo24 reported.
At whose expense?
Under the guise of stabilizing the currency, the
central bank of Jordan frequently raises interest rates, benefiting solely the banks at the
expense of the state treasury, which accumulates internal debt, and citizens
who bear escalating interest rates. The interest gap between creditors and
debtors widens, and banks profit from higher
interest rates on their central
bank deposits.
The representatives note that citizens considering loans may
reconsider due to the elevated interest rates. However, citizens previously
engaged in loans with agreed-upon interest rates shouldn't be subjected to unjustified
debt increases, contrary to their initial terms.
Additionally, banks are known to include clauses in
contracts permitting them to raise interest rates without client consent or
review. Debtors often overlook or underestimate these clauses. While such
conditions might not have posed issues during stable interest rate periods,
they now present significant concerns. The government is respectfully urged to
promptly intervene, considering such clauses as illegitimate consent
agreements. Loan interest rates should remain in line with initial agreements,
and any surplus funds collected should contribute to repayment.
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