The World Bank will be extending a low interest and long-term loan of $70 million to Jordan in hopes of facilitating the financing of microprojects as well as small and medium enterprises (SMEs).
The Minister of Planning and International Cooperation, Jafar Hassan, and the World Bank’s country director for Lebanon, Syria, Jordan, Iran and Iraq, Ferid Belhai, signed the agreement on Tuesday at the ministry’s headquarters in Amman, reported Zawya on Wednesday.
The loan is rumored to carry an interest rate of 1.45 per cent with a maturity period of 30 years including a 5 year grace period.
Hassan explained that the loan is to be managed by the Central Bank of Jordan as they plan to re-lend funds to local banks who will go on to allocate the funding into micro projects and SMEs.
Belhai added that the loan will represent an opportunity to enhance cooperation between Jordan and the World Bank and that the international financial organization has responded to the development needs of the Kingdom in a positive fashion. He also stated that during the upcoming months, Jordan and the World Bank plan on finalizing the details on yet another loan worth $100 million which will be used to bolster economic policies in the Kingdom.