Published: Mar 8, 2010 22:00 Updated: Mar 8, 2010 22:00
AMMAN: The Jordanian government on Monday borrowed $100 million from the Jordan Islamic Bank in what Finance Minister Mohammad Abu Hamour described as a recognition of the successful performance of Islamic finance during the latest global financial crisis.
Abu Hammour, who signed the loan agreement on behalf of the government, said that the credit would be used for buying wheat and barley to enhance the countryâs strategic stockpile of the two basic commodities.
âOur decision to turn to Islamic banks for borrowing came in the light of the success scored by Islamic banking during the world financial crisis,â the minister said.
Abu Hammour said that his ministry had set up panels for appraising the feasibility of borrowing through the issuance of Islamic bonds, the sukuk.
According to regional and international studies, Islamic banks were the least affected by the crisis that rocked the world economy in the last quarter of 2008, compared with big losses incurred by conventional banks.
Abu Hammour said that his ministry had come up with a plan to handle the record deficit in Jordanâs public budget which was expected to reach $1.5 billion in fiscal 2010. ¬
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