Saudi Arabia, Kuwait and the United Arab Emirates have placed over $1 billion in deposits at the Central Bank of Jordan and committed $500 million in budget support over five years as part of a $2.5 bln package to shore up the kingdom’s struggling economy, a Jordanian government source said.
The source said a signing agreement will take place later on Thursday that announces the breakdown of a $2.5 billion aid package pledged last June to help the Jordan implement austerity measures which had sparked massive protests.
The package also includes $600 million in credit guarantees by the three Gulf countries that will help Jordan secure cheap World Bank credit and other financing for much needed infrastructure projects.
Kuwait was the first to place $500 million in the Central Bank while another $330 million was received on Thursday from Saudi Arabia, the source added.
The protests last June worried conservative Gulf states who feared instability in staunch U.S. ally Jordan that has long backed their foreign policy positions could have repercussions on their own security.
Jordan’s key role in protecting geopolitical stability in the Middle East already makes it one of the highest per capita recipients of foreign aid in the world, according to figures from USAID, the U.S. aid agency.