JICA loans $100 million in support of Jordan’s COVID-19 response

(Photo: Jordan News)
AMMAN — Japan International Cooperation Agency (JICA) on Tuesday transferred approximately $100 million to the general budget, as an emergency development policy loan to support the Jordanian government's response to COVID 19 pandemic.اضافة اعلان

The loan, which was disbursed in Japanese yen, has a low-interest rate of 0.01, and a repayment period of up to 15 years, including a four-year grace period, according to Al-Mamlaka TV.

The amount aims to help implement a set of incentive measures launched by the Jordanian government at the end of March 2021 to deal with the repercussions of the pandemic on the national economy.

This loan is part of the Japanese government's support to the Kingdom, pledged during the London Conference in February 2019, whereby Japan provides Jordan with $300 million in loans during the period 2021-2023 to accelerate economic recovery efforts and meet financing needs.

Minister of Planning and International Cooperation Nasser Shraideh and JICA director signed the loan agreement in Amman on November 29.  

Cooperation between JICA and Jordan began in 1974 at the signing of the first loan agreement under a bilateral cooperation program.  Since that year, JICA has provided support to the Kingdom as part of ongoing ‘sustainable economic and self-reliance framework, totaling until today JD3 billion, according to the agency’s figures.

The 2022 draft general budget showed an outstanding external public debt to Japan, amounting to JD774 million in September this year.  Jordan ranks third place among recipients of JICA’s financial assistance in the Middle East, after Egypt and Iraq.

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