Japan provides $100 million budgetary soft loan to Jordan

AMMAN — Jordan and Japan on Sunday signed documents for a soft loan to support the Kingdom's General Budget with 16 billion Japanese yen (equivalent to some $100 million), according to a Planning Ministry statement.

The loan, which will be provided through the Japan International Cooperation Agency (JICA), it "very favourable terms that help reduce public debt costs," the statement said.

The agreement was signed by Minister of Planning and International Cooperation Zeina Toukan, Senior Vice President JICA Shuhei Hara and Japan’s Ambassador to Jordan Okuyama Jiro, the statement said. 

On the sidelines of the signing ceremony, Toukan discussed with Hara priorities for future developmental and technical assistance in alignment with the Economic Modernisation Vision, according to the statement.  

The loan aims to support human development policies and improve the management and efficiency of the social sector, particularly in health, education, and social protection. It also supports the implementation of the comprehensive plan for the Aqaba Special Economic Zone Authority, according to the statement.

"This funding is parallel to the $300 million Human Development Policy Loan provided by the World Bank, which was signed last July," the ministry said. 

Toukan thanked the Japanese government and people for their continuous support for Jordan's development priorities, hailing the deep relations between the two countries which, she said, will celebrate this year the 70th anniversary of the establishment of diplomatic relations.

Hara highlighted that the "loan recognises the comprehensive reform efforts by the Jordanian government, including the Economic Modernisation Vision, focusing on health, education, urban planning, and social protection sectors," the statement said.

He also underlined the importance of this loan in meeting the financing needs of the 2024 fiscal year budget, affirming Tokyo's continued financial and technical support to Jordan to assist in its developmental and reform efforts.

Since 1999, Jordan has received nearly $2 billion in financial  and technical assistance through JICA, focusing on priority sectors such as water, energy, public works, tourism, and industrial support, according to the statement.