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US, Jordan sign 1.5 bln USD loan guarantee agreement

Xinhua, May 31, 2015 Adjust font size:

Jordan and the United States on Sunday signed a U.S.-guaranteed loan agreement worth 1.5 billion U.S. dollars.

Jordan will use the deal to issue Eurobonds in international markets in June to borrow at lower interest rates, Prime Minister Abdullah Ensour said after the signing of the agreement.

This is the third loan guarantee agreement signed between Jordan and the U.S., according to Ensour, who said the bonds will be used to finance in fields of health, education and other main projects to support the country's economy.

"The loan guarantee agreement comes at a very important time when there is an increasing burden on the Jordanian economy and amidst increasing challenges and developments in the region," said the premier.

According to the Jordanian government, borrowing through U.S.-guaranteed Eurobonds will help Jordan save around 200 million dollars as it will be able to borrow at very low interest rates that might reach 2.5 per cent.

Jordan, a key U.S. ally in the Middle East, has been going through several economic challenges due to rising energy bill amidst the cut of gas supplies from Egypt and increasing influx of Syrian refugees. Endit