Early repayment of the debt of Jordan

The representatives of the Paris Club creditor countries and of the Government of the Hashemite Kingdom of Jordan met in Paris on 17 and 18 October 2007 in order to examine the offer from the Government of the Hashemite Kingdom of Jordan to undertake an early repayment on those debts not granted under Official Development Assistance rescheduled by the Paris Club in 1994, 1997, 1999 and 2002.

Paris Club creditors accepted the principle of a buyback by Jordan of its debt at market value. According to Paris Club rules, each creditor country may decide to participate or not in this early repayment operation. Several creditors have already announced their intention to participate in this operation.

The face value of Jordan's Paris Club debt eligible for this operation amounts to around US$ 2.5 billion as of 1st January 2008. For creditors willing to participate, the early repayment is scheduled to take place between 1st January and 31 March 2008, after the conclusion of bilateral implementation agreements.

This prepayment reflects the strong economic and financial performance of Jordan and the Government's sound debt management strategy.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of creditor governments from major industrialized countries.

2. The members of the Paris Club who are creditors of the Hashemite Kingdom of Jordan on debts eligible to this early repayment operation are Austria, Belgium, Canada, France, Germany, Italy, Japan, Spain, Switzerland, the United Kingdom and the United States of America.

3. The delegation of the Hashemite Kingdom of Jordan was headed by Mr Hamad KASASBEH, Minister of Finance. The meeting was chaired by Mr Xavier MUSCA, Chairman of the Paris Club, Head of the Treasury and Economic Policy Department of the French Ministry of Economy, Finance and Employment.

Technical note

The Hashemite Kingdom of Jordan's debt not granted under Official Development Assistance owed to Paris Club creditors eligible for the early repayment operation amounts to around US$ 2.5 billion (in face value, after payment of the 31 October 2007 and 31 December 2007 instalments), to be paid up to 2021.