Announcement of World Bank Supports Jordan’s Industry and Trade Reforms on December 18, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. *Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/32 Contact: Fawzi Rihane (202) 473-2675 WORLD BANK SUPPORTS JORDAN'S INDUSTRY AND TRADE REFORMS WASHINGTON, December 18, 1989 -- Jordan's program of industrial and trade reforms will benefit from a $150 million World Bank loan. The loan will support the government's ongoing structural adjustment program designed to lay the basis for sustainable long-term growth. The reform program includes measures to ensure a competitive and stable macroeconomic environment, improve the competitiveness and efficiency of industry and trade, and rationalize public expenditures. The program also contains measures to protect low-income groups from the adverse impact of adjustment policies by reorienting and improving the delivery of social services. The reforms supported by the loan are expected to reduce macroeconomic imbalances by rationalizing the trade regime and simplifying the system of investment incentives, and to strengthen institutions that promote and oversee industrial and manufactured exports. The loan will be disbursed in two installments of $75 million each. The first installment will become available when the loan becomes effective and the second as soon as the government has undertaken agreed policy measures. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.74 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.