Regulatory Alerts2020-04-05
Added · Updated
Amended Instructions for the Central Bank of Jordan's Program to Finance and Support Economic Sectors (Granting Medium-Term Loans to Licensed Banks No. 2011/54 dated 2011/03/14)
The Central Bank of Jordan amended its program for financing economic sectors to explicitly allow the use of funds for operating expenses, including employee salaries and wages, and working capital. Licensed banks are required to disburse the salary portion via formal transfers to employees or service providers and must receive monthly employee lists and salary details from the Social Security Corporation from borrowers. The Central Bank must also be provided with confirmation of these disbursements.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Number: 6/3/4658 Date: 11 Sha'ban 1441 AH Corresponding to: 05 April 2020 AD
Amended Instructions for the Central Bank of Jordan's Program to Finance and Support Economic Sectors (Granting Medium-Term Loans to Licensed Banks No. 2011/54 dated 2011/03/14)
Subsequent to the instructions regarding the Central Bank of Jordan's Program to Finance and Support Economic Sectors (Granting Medium-Term Loans to Licensed Banks No. 2011/54 dated 2011/03/14) and all subsequent circulars issued thereunder, and in continuation of the measures taken by the Central Bank of Jordan to contain the negative repercussions of the COVID-19 virus on the national economy, and with the aim of enabling various economic sectors to maintain their operations and preserve their workforce, the Central Bank of Jordan has decided to include the financing of operating expenses and working capital, including employee salaries and wages, among the permissible objectives in the Central Bank of Jordan's Program to Finance and Support Economic Sectors. Banks are required to ensure that the portion related to salaries, wages, and recurring expenses is disbursed from the financing value via formal transfers or orders to employees and service providers. The borrower must provide the banks with a list of its employees and their salaries from the Social Security Corporation when these salaries and wages are disbursed monthly, and must provide the Central Bank of Jordan with confirmation thereof.
Governor Dr. Ziad Fries