JICA transfers 2nd installment of soft loan to Jordan worth $170m

AMMAN — Japan has transferred $170 million in soft loan to Jordan as a direct support to the general budget, a Planning Ministry statement said on Saturday.

The loan, extended through the Japan International Cooperation Agency (JICA), will go towards supporting the government’s “Financial Sector, Business Environment and Public Service Reform Policy”, according to the statement.

It is the second instalment of a soft loan agreement worth $250 million that was signed in December 2016, when JICA paid the first instalment worth $85million.

The loan is to be repaid over a 30-year period with a 10-year grace period and an interest rate of 0.2 per cent, according to the statement.

Commending Japan’s continuous support to the Kingdom, Minister of Planning and International Cooperation Imad Fakhoury voiced Amman’s appreciation for Tokyo as a key partner in pushing the development process forward, and for its efforts in supporting Jordan to finance priority development programmes in the economic and social fields.

Fakhoury highlighted the "deep-rooted" relations between Jordan and Japan, praising the Japanese government's "understanding" of the challenges that the Kingdom is facing due to regional turmoil.

In 2016, Japan extended two grants worth $26.03 million to Jordan to support the Kingdom’s humanitarian role towards the Syrian refugees. The grants were used to purchase equipment for the ministries of water and municipal affairs, in addition to enhancing security measures at the borders, according to the statement.  

Since 1999 till 2017, Jordan has received more than $1.3 billion in support from Japan, of which $527.32 million as grants and the rest in soft loans, in addition to JICA's technical support to the Kingdom.

In 2012, JICA extended $750 million as concessional loans to support the general budget of Jordan.