Arab Monetary Fund approves $76m Jordan loan

Loan will allow country to undertake key financial reforms - cbank governor.
Arab Monetary Fund approves $76m Jordan loan
BANKING BOSS: Ummaya Toukan, Jordan central bank governor. (Getty Images)
By Reuters
Sun 20 Jun 2010 01:22 PM

The Abu Dhabi based Arab Monetary Fund has approved a $76 million loan for Jordan to undertake key financial reforms that include bank stress tests and setting up a credit bureau, the central bank governor said on Sunday.

The governor of the Central Bank of Jordan, Ummaya Toukan, told the state news agency Petra ahead of travelling to Abu Dhabi to sign the loan agreement on Sunday that the disbursement of the funds was tied to implementing the three-phased plan.

Jordan's monetary authorities have strengthened supervision of the country's banking sector since the global downturn to reduce financial vulnerabilities by boosting capital adequacy ratios, liquidity and installing "early warning" systems.

The AMF loan would be paid back in four years in five equal instalments every six months, the governor said.

Since 1983 and 2009, the AMF has extended 16 loans to Jordan worth $350 million to support the treasury and another $411 million to fund trade between Arab countries. (Reuters)

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