| 09 Mar 2010 |
|
Jordan Islamic Bank to finance $100m of wheat, barley imports
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AMMAN (JT) - Jordan Islamic Bank (JIB)Jordan Islamic Bank (JIB)
on Monday signed a $100 million finance agreement with the Ministry of Finance, a bank statement said. will extend to the government the required funds for its imports of wheat and barely. The agreement, signed by Finance Minister Mohammad Abu Hammour and JIBJIB General Manager Musa Shihadeh, is governed by a murabaha contract, one of the Islamic finance and investment methods applied by the bank.
The government should pay back the principal amount at three biannual instalments, after a six-month grace period, the Jordan News Agency, Petra, reported.
In implementation of the agreement, the JIBJIB
will open letters of credit to facilitate the purchase of wheat and barely at a ceiling of $100 million. On behalf of the government, the Industry and Trade Ministry will be the party responsible for managing and following up on these transactions.
Industry and Trade Minister Amer Hadidi who attended the signing ceremony said the agreement will contribute to the government's financial stability and reduce the government's total bill for importing wheat and barely which exceeds JD100 million annually.
With regard to the murabaha rate, Abu Hammour said it is very small but he added the government prefers not to disclose it to maintain its negotiating capability, according to Petra.
© Jordan Times 2010
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