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Jordan, US signed loan guarantee agreement

Staff writer |
Jordan and the United States signed a loan guarantee agreement which allows Jordan to issue Eurobonds in the global financial markets. U.S. will provide guarantees for $1.25 billion for up to 7 years.

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Prime Minster Abdullah Ensour, who signed the agreement on behalf of the Jordanian government, said this guarantee, which aims to support the economic and financial reform effort in Jordan, demonstrates the US's outstanding support to Jordan by helping the country to fulfill its financing needs from international markets at better terms.

Mr. Ensour saidthat the U.S. Government, acting through USAID, plans to provide guarantees on Jordanian government bonds for the amount of $1.25 billion for up to 7 years. He added that the loan guarantee agreement will enhance Jordan's ability to borrow from international markets, while reducing its financing needs from the domestic market.

Mr. Ensour said this agreement will also allow Jordan to obtain external financing with competitive interest rates at par with US Government borrowing, which will reduce the Jordanian government debt service payments, but he pointed out that this effort does not mean in any way, that Jordan will give up or be lax in its reform efforts.

The deputy chief of the USAID mission Stephanie Williams said the signing of this agreement reflects commitment by the US government to support Jordan's economic efforts and provide the basic services for Jordanians.

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