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Deal to Reschedule Jordanian Debts to KFAED

Ghanim and Obeidat during the signing ceremony. Asharq Al-Awsat
Ghanim and Obeidat during the signing ceremony. Asharq Al-Awsat
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Deal to Reschedule Jordanian Debts to KFAED

Ghanim and Obeidat during the signing ceremony. Asharq Al-Awsat
Ghanim and Obeidat during the signing ceremony. Asharq Al-Awsat

Jordan’s Ministry of Planning and International Cooperation and the Kuwait Fund for Arab Economic Development (KFAED) have signed an agreement to reschedule Jordanian debts.

The deal comes as part of Kuwait’s continued support to Jordan through KFAED to help it confront the economic challenges that the country faces due to instability in the region.

The rescheduled debts are worth 300.7 million dollars.

The acting secretary-general of the Jordanian Ministry of Planning and International Cooperation, Ziad Obeidat, and KFAED’s operations department director Marwan al-Ghanim signed the deal in Amman on Thursday.

In a statement, Obeidat said the agreement aims to schedule Jordanian debts accumulated as a result of 17 loans.

It would be paid off during a period of 40 years with a 15-year grace period and a one-percent interest. 

Obeidat thanked the KFAED, the Kuwaiti government, and people for their generosity, affirming that Jordan welcomed all gestures of solidarity during periods of economic strife.

On his part, Ghanim lauded relations with Jordan, stressing that Kuwait would help Amman achieve economic stability.

Kuwait had deposited 500 million dollars at Jordan’s Central Bank to meet pledges it made at the Makkah summit in June.

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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.