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2022-10-13

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Central Bank of Jordan Circular No. 10/3/18224: Repeal of Provisions on Provisions for Expropriated Properties

The Central Bank of Jordan repeals the requirement to deduct provisions for properties expropriated in violation of Banking Law No. 28 of 2000, as established in Circular No. 10/1/4076 dated March 27, 2014, and subsequent circulars including Nos. 10/1/6841, 10/1/2510, 10/1/16607, 10/1/13967, and item 1 of Circular No. 10/1/16239. Banks are instructed to maintain existing provisions allocated against such expropriated properties and to release these provisions only when the specific non-compliant properties are disposed of.

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In the Name of Allah, the Most Gracious, the Most Merciful

Central Bank of Jordan

No.: 10/3/18224 Date: 14/3/1444 AH Corresponding to: 10/10/2022 AD

Circular to Banks Operating in the Kingdom

Greetings,

Continuing the approach of the Central Bank characterized by following up and reviewing its issued instructions to make any amendments thereto in line with international standards and sound banking practices, and the procedures adopted by the Central Bank of Jordan regarding the impact of applying the requirements of International Financial Reporting Standard No. 9 (IFRS 9) on the financial statements of banks, it has been decided to repeal Item (Second) of Circular No. 10/1/4076 dated 27/3/2014, concerning the request to deduct provisions for properties expropriated in violation of the provisions of Banking Law No. (28) of 2000 and its amendments, as well as the circulars/items of circulars subsequent to it mentioned below:

  • Circular No. 10/1/6841 dated 3/6/2015.
  • Item Second of Circular No. 10/1/2510 dated 14/2/2017.
  • Circular No. 10/1/16607 dated 17/12/2017.
  • Circular No. 10/1/13967 dated 25/10/2018.
  • Item No. (1) of Circular No. 10/1/16239 dated 21/11/2019.

Reaffirming in this regard the necessity to maintain the provisions allocated against properties expropriated in violation of the provisions of Banking Law, and that the provision allocated against any of the non-compliant properties shall be released only upon their disposal.

Please accept our highest respect,

Governor Dr. Adel Al-Sharkas

P.O. Box 37 • Amman 11118 Jordan • Tel: 4630301 • Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo

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