Khaberni - The House of Representatives discussed, in a legislative session on Monday, the decision of its Finance Committee regarding the bill to ratify a loan agreement between the Jordanian and Italian governments for the year 2024.
The agreement stipulates that the Italian side will provide an interest-free loan of 50 million euros, aimed at supporting one of the general budget projects, particularly for financing the implementation of the digital transformation program in the health sector.
The Minister of State for Political and Parliamentary Affairs, Abdul Monem Al-Oudat, said that the agreement is a soft loan for financing the public treasury, explaining that the ratification bill was presented by the government to the House of Representatives in compliance with constitutional articles that require the government, when signing an agreement with other countries, to have it ratified by the National Assembly, and it is not considered in effect until ratified by it.
He confirmed that the agreement does not affect Jordanian sovereignty, but is rather a soft loan agreement for financing service projects, with a half percent interest rate, a repayment period of 20 years, and a grace period of 7 years.
He explained that constitutional interpretations exempted the government from presenting agreements signed with international donor and lending organizations to the House of Representatives for ratification, unlike laws signed with governments or their representatives.
Al-Oudat pointed out that the agreement is unrestricted, allowing flexibility in managing the financing from the loan within government service plans and projects, particularly in developing the public sector, especially the health sector, clarifying that "the agreement benefits the public treasury and the general budget."
He explained that the 7-year grace period is a preferential feature that allows flexibility for the Jordanian government to repay, and this feature can be waived for early repayment.
Al-Oudat stated that the project is implemented by the Jordanian government, and no lending or donating party has the right to intervene in its implementation.
The head of the parliamentary Finance Committee, Nimr Al-Sulihat, said during the session that the bill to ratify the loan agreement signed between the Government of the Hashemite Kingdom of Jordan and the Government of the Italian Republic supports one of the general budget projects, specifically aimed at financing the ‘Hakeem’ program to support digital transformation in the health sector.
He added that 60% of the agreement, amounting to 30 million euros, is a grant, and the rest is a loan of 20 million euros, with a repayment period of up to 20 years, and a 7-year grace period, noting that the loan falls within the framework of bilateral partnership and cooperation between the two countries, and emphasized the necessity for the stages of the agreement's program implementation to be subjected to the control of the Audit Bureau.
The Minister of Planning and International Cooperation, Zeina Toukan, clarified in a previous statement that, under the agreement, Jordan commits to providing the necessary financial resources for implementing the program, according to the annex of the agreement, ensuring the achievement of the desired objectives from this joint cooperation, and in line with national priorities, pointing out that the value of the agreement is distributed as 60% grants, while the remaining portion constitutes a low-interest loan at 0.5%, with a repayment period of up to 20 years.
