Regulatory Alerts2021-03-03
Added · Updated
Instructions for Granting Credit Facilities in Foreign Currency and Controls for Non-Resident Financing No. 2/2021
The Central Bank of Jordan issued Instructions No. 2/2021 to consolidate and amend regulations regarding foreign currency credit facilities and financing for non-residents or activities outside the Kingdom. The document prohibits banks from granting credit to persons not engaging in activity within the Kingdom, with specific exceptions for free zone companies, offshore guarantees, and international Murabaha, while mandating that direct foreign currency facilities be used only for export-related activities generating foreign cash inflows. Banks are required to rectify existing non-compliant facilities by their maturity dates and must submit quarterly data reports starting from March 2021, with the new instructions effective immediately and superseding several prior circulars.