$333 million UAE deposit turned into soft loan

Uae Amman
(File photo: Jordan News)
AMMAN — Jordan and the UAE have agreed to transfer an Emirati deposit of $333 million deposit at the Central Bank of Jordan into a soft loan in light of the rise in interest rates globally, an official source at the Ministry of Finance said, according to the Jordan News Agency, Petra. اضافة اعلان

This agreement comes in light of the UAE’s support for Jordan.

The Jordanian government succeeded in issuing Eurobonds worth $650 million at a coupon price of 7.75 percent, maturing after five and a half years. This indicates the confidence of investors and international institutions in the Jordanian economy despite the instability in global financial markets and high interest rates.

The official source also stated that proceeds from the UAE loan and the Eurobond issuance will be used to extinguish a $1 billion Eurobond loan which will mature at the end of this month. By doing so the government will avoid increasing the public debt balance since this latest round of funding is within the state budget for 2022.

Read more Business
Jordan News