Regulatory Alerts2020-07-20
Added · Updated
Central Bank of Jordan Circular No. 8771/3/10 on Loan Installment Deferrals
The Central Bank of Jordan requires banks operating in the Kingdom to expand the definition of 'affected' clients eligible for loan installment deferrals to include individuals and employees whose salary increases or bonuses were deferred due to the coronavirus pandemic. This directive amends the scope of Circular No. 4375/3/10 by explicitly adding deferred compensation to the criteria previously limited to interrupted or reduced income. Banks are mandated to apply these provisions with flexibility to alleviate the financial burden on the specified sectors.
Central Bank of Jordan
CENTRAL BANK OF JORDAN
Reference No.: 8771/3/10 Date: 28 / 11 / 1441 AH Corresponding to: 20 / 7 / 2020 AD
Circular to all banks operating in the Kingdom
Following our circular No. 4375/3/10 dated 2020/3/15, which allowed banks to defer installments for clients affected by the coronavirus pandemic, banks are required to also consider that the concept of "affected" in the aforementioned circular includes, in addition to individuals whose income or salaries were interrupted or reduced due to the coronavirus pandemic, all individuals and employees whose salary increases and/or bonuses were deferred.
In this regard, the Central Bank of Jordan emphasizes the necessity for banks to deal with these circumstances with the highest degree of flexibility and to take all necessary measures aimed at alleviating the burden on affected individuals and sectors.
Please accept our highest respect,
Governor Dr. Ziad Frieze