Jordan and the United States have signed an agreement in which Washington pledges to extend loan guarantees to the Hashemite kingdom, the US State Department announced on Monday.

This is the second sovereign loan guarantee agreed to by the two governments in the last year.

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“The United States’ loan guarantee will allow Jordan to access affordable financing from international capital markets, ensuring that Jordan can continue to provide critical services to its citizens as it enacts transformative economic reforms and hosts 600,000 refugees who have fled the violence inside Syria,” the State Department announced. “The loan guarantee agreement is designed to support specific economic reforms the Government of Jordan is pursuing to promote the economic stability and growth needed to provide opportunity and prosperity to the Jordanian people.”

“Pursuant to the loan guarantee agreement, the United States would guarantee repayment of principal and interest on the issuance of up to a $1 billion, five-year Jordanian sovereign bond,” the State Department announced. “This follows the US guarantee for a $1.25 billion issuance last year. Last year’s guarantee was very successful in reducing Jordan’s borrowing costs, and supporting its reform efforts during a time of regional instability.”

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