Circular dated January 8, 2020 regarding extending the work period for the tourism sector support initiative and the retail loan initiative for workers in the tourism sector until the end of 2020

Dear Sir / Chairman of the Board of Directors,

Greetings,

With reference to the circulars regarding the Tourism Sector Support Initiative issued on February 23, 2016, and the Retail Loan Initiative for Workers in the Tourism Sector issued on December 7, 2015, and the subsequent letters regarding the extension of their validity, and in light of the economic impact resulting from the coronavirus outbreak and the resulting restrictions on movement, which affected the tourism sector and its workers, and in light of the need to support the stability of banks and their clients, and in light of the resolution of the Monetary Policy Committee dated January 5, 2020, and in light of the following:

1. Extending the validity period of the Tourism Sector Support Initiative for an additional year to end by the end of December 2020, during which banks may submit monthly settlement reports for the maximum period of three years from the date of disbursement.

On the following:

• The limits specified in the circular shall be determined by the banks in accordance with the guidelines issued by the Central Bank of Jordan.
• The banks shall submit a written request to the Central Bank of Jordan to amend the text of the circular.

2. Extending the validity period of the Retail Loan Initiative for Workers in the Tourism Sector for one year to end by the end of December 2020, subject to the banks submitting a written request to the Central Bank of Jordan to grant a grace period for principal and interest payments for loans approved before September 30, 2019 - provided that the borrower remains in the tourism sector - for a period of six months additional from the date of disbursement only, in accordance with the provisions of the circular.

According to the provisions of the circular regarding the establishment of the Central Bank of Jordan dated May 24, 2005.

3. Prohibiting banks from applying impairment rules, taking into account the regulatory requirements for accounting standards (IFRS9).

And to facilitate the rights of the previous borrowers in the tourism sector, it is not permissible to deduct the grace period from the eligibility period for the Tourism Sector Support Initiative loans issued on December 7, 2015.

Please accept the highest regards,

Amr Al-Amir