Regulatory Alerts2017-06-09
Added · Updated
Central Bank of Jordan Circular on Preferential Interest Rates for Projects Outside Amman
The Central Bank of Jordan mandates a preferential interest rate of 1.0% and extends the term of medium-term advances to ten years for qualified projects in the Industry, Tourism, Agriculture, and IT sectors located outside Amman. Licensed banks are required to submit verification documents, such as profession licenses and land registration records, to confirm the project's location. These instructions became effective immediately upon issuance on September 7, 2016.
Number: 4/11843 Date: 5 Thul Hijja 1437 Hijri Corresponding to 7 September 2016 Circulation to all Licensed Banks Pursuant to instructions on the program of extending medium- term advances to licensed banks no (54/ 2011) dated on 14/3/2011 and all subsequent circulars on this regard, and in order to improve the chances of the economic projects included within the program (Industry, Tourism, Agriculture, Renewable Energy, and the IT Sector) and particularly Small and Medium projects (SMEs) which partake in offering employment and creating added value to areas outside the capital Amman and consequently strengthening the comprehensive and sustainable development in the kingdom, we; therefore, decide to grant a preferential interest rate and increase the terms of advances extended within the program to qualified projects situated outside Amman to be as follows: First: The interest rate is set at 1.0% for the extended advances and to all targeted economic sectors. Second: Increasing the terms of advances extended to the targeted economic sectors (Industry, Tourism, Agriculture, IT Sector) to 10 years. Third: Providing the Central Bank with necessary documents that verify that the project is set outside Amman (Professions license, the registration documents of lands where the project is set…etc) These instructions are effective as of date. Respectfully Governor Dr. Ziad Fariz