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Deal reached to help delinquent borrowers of development fund

By JT - Jul 21,2019 - Last updated at Jul 21,2019

AMMAN — People with delinquent loans from the Development and Employment Fund (DEF) will have an opportunity to rectify their status under a new agreement reached with the preparatory committee, Labour Minister Nidal Bataineh said on Friday. 

Bataineh, who is also head of the DEF, said that some borrowers had complained that they could not pay instalments due to pay cuts and a rise in the cost of living, which have led to asset seizures. 

In this regard, the minister said that consensual decisions have been reached to address the problem and help delinquent borrowers pay back their loans, the Jordan News Agency, Petra, reported. 

These solutions were reached without affecting the fund’s assets, which are considered public money that has to be preserved, he said, noting that 220 settlements valued at JD2.25 million have been reached.

DEF’s board of directors has decided not to grant additional loans without educating borrowers on the importance of feasibility studies, choosing projects that suit the value of their loans and having estimations about expected revenue, Bataineh added.

According to a ministry statement, cited by Petra, borrowers with loans less than JD10,000 will be eligible to sign settlements to pay their debts in instalments extending to 96 months, while those whose loans range between JD10,001 and 20,000 will be allowed to repay their loans within 120 months.

Those with loans exceeding JD20,000 will be able to repay their loans within 144 months.

The Cabinet in late April issued an order that required all government funds to postpone payment deadlines during Ramadan. 

These funds included the Hajj Fund, the Orphans Fund Development Foundation, the Development and Employment Fund and the Jordan Postal Saving Fund.

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