Regulatory Alerts2021-05-19
Added · Updated
Circular dated May 19, 2021 regarding amending the two tourism initiatives to finance the replacement and renovation of hotels and transportation fleets and the payment of salaries, wages, and maintenance
The Board of Directors of Bank Al Etihad Amman amended two tourism financing initiatives effective May 9, 2021. The first initiative, covering hotel and fleet replacement with an 8% declining interest rate, now allows financing up to 90% (from 75%) of the replacement cost and reduces the required collateral guarantee from 60% to 70% of the loan amount. The second initiative, covering salary payments with a 5% declining interest rate and a Jordanian Dinar 3 million guarantee, extends the repayment period to June 2022 and allows for a grace period of up to 30 days for individuals and 40 days for companies, provided the underlying work is completed. These amendments apply regardless of foreign shareholding ratios and do not require borrowers to have achieved profits in previous years.