$705.2mln channelled into economy this year as stimulus measure - Jordan's Finance minister

AMMAN - Half a billion Jordanian dinars have been pumped into the economy since the beginning of the year, Finance Minister Mohamad Al-Ississ said on Monday.

The Ministry of Finance has secured the liquid assets to cover financial dues to the private sector, which will be disbursed during April and May, Al-Ississ said, pointing out that these dues amount to JD150 million, according to a ministry statement.

This measure was taken to enable the private sector to continue operating in order to stimulate the Jordanian economy, the minister added.

Making these liquid assets available to citizens and the private sector amid the repercussions of the novel coronavirus pandemic “indicates positive economic measures and reflects the strength of the Kingdom’s economy”, Al-Ississ said.

It is also in line with the government’s efforts to stimulate the economy, which have been in progress since the beginning of the year, he said.

"This move shows a confirmation of a previous commitment, that the government will fulfil all of its commitments and it is also a step in the right direction to not have financial arrears and new commitments, as well as to address previous financial arrears, which have negative effects on the Treasury," he said.

JD15 million in financial dues have been transferred to the Income and Sales Tax Department this month. The ministry will transfer the dues to the accounts of taxpayers, individuals and companies that are entitled to tax refunds, the statement added.

JD10 million has been allocated to the Ministry of Public Works and Housing to be disbursed to contractors, in addition to JD10 million for the benefit of the hospitals of the Ministry of Health, JD10 million for pharmaceutical companies and warehouses, JD10 million for oil derivative allowances and JD5 million for the University of Jordan Hospital, Royal Medical Services and King Abdullah University Hospital.

Additional amounts will be allocated to pay the remaining dues next May, the statement said.

The Ministry of Finance, during the last week of 2019 and the first week of 2020, paid previous financial commitments and arrears to the private sector, which totalled JD350 million.