AMMAN: The government, on Wednesday, gave the go-ahead for the signing of a $3-billion framework agreement that aims at financing the import basic goods and commodities such as oil, petroleum derivatives, liquefied gas, drinking water and foodstuffs including wheat, barley, sugar and rice.
The decision to sign the agreement with International Islamic Trade Finance Corporation was taken during a cabinet meeting, chaired by Prime Minister Abdullah Ensour. According to the agreement, the financing will be provided in the form ofsoft loans, so that funding be available upon request, not binding and shall have no obligations in the event of the amount borrowed is’nt used over three years.
Also, the profit margin and duration of funding for each financing tool is determined, separately, according to market prices, in agreement between the ITFC, the government and the stakeholders. The ITFC shall also work to reduce the profit margin as much as possible.
The agreement is ought to strengthen Jordan’s capacity to finance its needs of commodities. Also, the cabinet approved an agreement with South Korea, under which the latter will offer a supplementary loan of $12.8 million to finance the construction of the research nuclear reactor at the Jordan University of Science and Technology.In 2010, the government signed a $70-million agreement with the Export-Import Bank of Korea to finance the project.
