King directs gov’t to resolve DEF borrowers' loan stress

AMMAN — His Majesty King Abdullah on Monday instructed the government to carry out remedial measures to mitigate the mounting debts of borrowers from the Development and Employment Fund (DEF).

His Majesty directed the government to waive accumulated interests of the loans the DEF granted between 2016 and early 2017 and reschedule loans over 10 years according to the same terms and conditions stipulated in the original loan agreements, according to a Royal Court statement.

King Abdullah directed the government to review individual cases where borrowers defaulted their dues in a way that achieves justice and safeguards the DEF’s assets, the statement said.

The King also called on the government to review the working mechanisms of the fund so as to invest its assets in sustainable and job creation projects. 

The DEF was established in 1989 as a government institution with financial and administrative independence. 

The fund is tasked with developing and financing small- and medium-sized enterprises and micro-projects through its self-generated revenues, according to its website.