Amman: The Ministry of Local Administration has announced a significant move to restructure and reschedule the debts and overdrafts of Jordan's municipalities, a measure aimed at easing their financial obligations and ensuring the continuation of essential services to citizens.
According to Jordan News Agency, the ministry outlined that this restructuring initiative stems from the recommendations made by the Board of Directors of the Cities and Villages Development Bank (CVDB). The initiative includes exempting municipalities from due interest payments until 2025, a relief amounting to approximately JD66 million. Additionally, municipalities are freed from unpaid loan interest, which is estimated to be about JD150 million through the end of the repayment period.
The ministry emphasized that this financial restructuring is part of a broader government strategy to reorganize the financial commitments of Jordanian municipalities. The aim is to enhance both administrative and financial efficiency within these local administrations.
The ministry also highlighted that the objectives of the program include bolstering the sustainability of municipal services, supporting the municipalities' capacity to undertake development projects, strengthening the financial standing of the CVDB, and ensuring its consistent cash flow.