Decision to postpone April loan dues draws positive reactions

AMMAN — The decision to postpone loan installments for April on the occasion of the holy month of Ramadan draws positive reactions. 

Local banks have decided to postpone payments on loans granted to individuals for April, which will coincide this year with the holy month of Ramadan, the Association of Banks in Jordan (ABJ) announced on Monday

Maher Mahrooq, ABJ director general said in a statement on Monday that the decision is part of local banks’ social responsibility to relieve financial burdens on citizens during Ramadan. 

“Banks in Jordan agreed in coordination with the Central Bank of Jordan to postpone the installments of individual loans during the holy month of Ramadan — for April — without interest delay or commissions,” Mahrouq added. 

Meanwhile, economist Khaled Salemeh said that the decision should have included March’s loan installments as well. 

He added that generally, people prepare for Ramadan in advance. If they pay March’s installment, they will be short in cash as Ramadan is expected to start by the beginning of April, therefore, people will use March’s salaries to prepare for Ramadan in advance and stock goods. 

“It is not too late for the banks to include March loan installment in the postponement decision,” Salameh noted. 

Ahmad Masa’ad, a bank employee, said that while the decision to postpone installments for April is not “financially favourable” for banks operating in Jordan, it is for the interest of the people. 

He noted that it affects the cash flow of banks.

“We understand that it is for the best interest of people, since a good percentage of Jordanians take loans from banks,” he added. 

A retail manager who preferred to remain anonymous, told The Jordan Times that postponing loan installments will help strengthen support for the economic sectors by providing liquidity, which will contribute to maintaining the growth path of economic activities and the stability of various financial and commercial transactions.