Regulatory Alerts2017-12-11
Added · Updated
Circular Amending the Maximum Tenor for Customer Debt Restructuring
The Central Bank of Jordan amends Circular No. (10/1/11084) to allow licensed banks to extend the maximum tenor for customer debt restructuring from eight to ten years. This change applies to the period specified in Item (9/B) of the Instructions for Dealing with Customers issued under Circular No. (56/2012). Banks must ensure that this extension does not cause debt burden ratios to exceed those specified in their approved credit policies.
10/1/ / /1440 AH / /2018 AD Circular to all licensed banks
Subsequent to our circular No. (10/1/11084) dated 27/8/2018, and in light of the inquiries received regarding the content of this circular, it has been decided to amend Item (First/A) of the aforementioned circular to read as follows:
"A bank may exceed the period specified in Item (9/B) of the Instructions for Dealing with Customers issued by the Central Bank of Jordan under Circular No. (56/2012) dated 31/10/2012, as amended by Circular No. (57) of 2013 dated 20/5/2013, such that it does not exceed ten years (instead of eight years) from the date of disbursement, rescheduling, or restructuring, provided that such facilitation assists customers in facing the financial burdens incumbent upon them, and provided that this does not result in exceeding the debt burden ratios specified in the bank's approved credit policy."
Please accept our highest regards,
The Governor Dr. Ziad Fariz