Regulatory Alerts2021-03-03
Added · Updated
Instructions on Granting Foreign Currency Credit Facilities and Controls on Granting Credit Facilities to Persons Not Engaged in Activities within the Kingdom and/or for Financing Activities Outside the Kingdom No. (2/2021)
The Central Bank of Jordan issued Instructions No. (2/2021) to consolidate and amend regulations regarding direct foreign currency credit facilities and controls on lending to persons not engaged in activities within the Kingdom. The document permits banks to grant direct foreign currency facilities for export and re-export activities, provided repayment is in the same currency and inflows exceed facility values, while prohibiting such facilities for building financing. It strictly bans credit facilities to non-resident entities or for external financing, with specific exemptions for letters of credit for goods supplied outside the Kingdom, interbank facilities, and companies in special zones. Banks must regularize existing non-compliant facilities by their maturity dates and submit quarterly data reports starting March 2021, replacing several prior circulars and instructions.