Jordan, Japan sign $100m loan agreement to combat development challenges

AMMAN — Japan and Jordan on Tuesday signed a memorandum of understanding (MoU), under which the Japan International Cooperation Agency (JICA) will offer a $100 million loan to support the general budget, combat economic and development challenges, as well as enhance social protection.

The loan agreement is part of a $300-million loan that came in response to a request to the Japanese government to support the budget following the 2019 London Initiative to support Jordan, according to a Planning Ministry statement.

The memos were signed by Minister of Planning and International Cooperation Nasser Shraideh, on behalf the Jordanian government, and Japan's Ambassador to Jordan Shimazaki Kaoru and JICA's main representative in Jordan Chi Mihara, on behalf the Japanese government 

The statement said that this loan is the fifth Japanese direct support to the general budget since 2014, in addition to a loan made in 2012 to support capital projects listed in the general budget.

The loan provides emergency support to help Jordan respond to the effects of the COVID-19 pandemic with concessional terms.

Shraideh said that sustainable foreign assistance to Jordan reflects the international community and donors’ understanding of the Kingdom’s needs, notably the repercussions of the Syrian crisis and the spread of the pandemic.

Expressing appreciation for Japan’s efforts in support of the Kingdom, the minister highlighted the two sides’ keenness to advance cooperation in various fields of common interest.

In 2021, Japan offered two grants of $27.4 million to finance the implementation of a renovation project to the Zay station that provides drinking water to Amman and Balqa.  

The Japanese ambassador expressed hope that the new loan would contribute to supporting the government’s development efforts, as well as help realise a quick economic recovery from the impact of the pandemic.