Jordan secures $100m soft loan from Kuwait-based Arab fund

AMMAN – Jordan on Tuesday signed a $100 million soft loan agreement with the Arab Fund for Economic and Social Development (AFESD) to fund small- and medium-sized enterprises (SMEs).

Minister of Planning and International Cooperation Imad Fakhoury, who signed the agreement with AFESD Director General Abdullatif Youssef Al Hamad, said the agreement is part of efforts to combat poverty and unemployment, increase production and support innovative initiatives, according to a statement. 

Under the accord, the fund will be granted to the Central Bank of Jordan to lend to commercial banks and other lending facilities with easy credit conditions.

Kuwaiti-based AFESD is considered a main partner in supporting the Kingdom's development efforts through extending soft loans to the country with low interest rates and long-term repayment schedules that extend to 25 years. 

The fund has contributed to financing 44 projects of economic and social priorities at a cost of around $1.637 billion between 1975 and 2014, while it has extended $24.2 million in grants that were used towards water, health, education and sewage schemes. 

AFESD also funded a number of SMEs through soft loans worth    $80 million, read the statement.