Agreement reached to convert $333m UAE deposit into soft loan — source

AMMAN — In light of the worldwide high-interest rates, Jordan and the United Arab Emirates have agreed to convert a $333 million deposit held by the latter with the Central Bank of Jordan (CBJ) into a soft loan, an official source at the Ministry of Finance said on Tuesday.

Meanwhile, the source said that the Jordanian government had successfully issued Eurobonds worth $650 million at a coupon rate of 7.75 per cent, maturing in five and a half years, an indicator of investors' and international institutions' confidence in the Jordanian economy despite global financial market volatility and high-interest rates, the Jordan News Agency, Petra, reported.

The source noted that the Emirati loan and new Eurobonds would be used to repay $1 billion in Eurobonds that will mature by the end of the current month, assuring that the additional funds will not raise the public debt balance because they are part of the 2022 budget.