Gov’t seeks $3.4 billion in loans and grants

AMMAN – The government seeks to secure external financing through grants and loans worth $3.4 billion between April 2015 and March 2016.

According to a report by the International Monetary Fund, the value of loans from external lenders is estimated to be around $2.6 billion, while confirmed grants from Arab and foreign donors are worth $800 million, of which $500 million are set to come from the Gulf fund and $300 million from the US, according to the report, which was issued after the fund concluded its sixth review under the Stand-By Arrangement with Jordan. 

Jordan also seeks to secure cheap loans by issuing US-guaranteed bonds on international markets, totalling $1.5 billion, along with $500 million in non-US guaranteed bonds. 

Early this month, Jordan and the US signed the third sovereign loan guarantee agreement that will enable the Kingdom to raise $1.5 billion this month on global financial markets at low interest rates. 

The government plans to issue the non-guaranteed bond worth $500 million in the last quarter of this year. It also said it would borrow $600 million from regular foreign lenders such as Japan, the World Bank and the EU. 

Part of the proceeds of the bonds will be used to pay off a $750 million bond that will mature at the end of the year, according to a government official.