Central Bank to launch 2nd issue of individual bonds

AMMAN — The Central Bank of Jordan (CBJ) is preparing to launch a second issue of government bonds for individuals after subscription in the first issue reached JD27.9 million.

The issue will be available from late July until early September, and will provide all individuals, especially Jordanian expatriates, with an opportunity to benefit from this saving tool, the Jordan News Agency, Petra, reported, quoting a senior CBJ official.

The first issue of the bonds, called “Saving Bonds for Individuals”, was issued on July 3 at a fixed interest rate of 4.25 per cent for five years. 

Adel Sharkas, CBJ deputy governor, said the purpose of these bonds is to expand medium- and long-term saving tools to allow individuals to manage their savings safely and with fixed returns.

Other purposes include increasing local savings that can be used in economic development and investment in productive sectors, which would benefit the national economy and citizens alike, Sharkas told Petra.

Issuing government bonds in the Kingdom, including these bonds, is part of the government’s plan to manage the public debt soundly, the CBJ official said, adding that they will not lead to any increase in the domestic public debt.

To make it easier for individuals to subscribe to these bonds and examine terms and conditions, CBJ has launched a special window on its website with high levels of security, speed and efficiency, to enable individuals to subscribe from anywhere and at anytime, he added.

Regarding payment methods, Sharkas said the bank provided recently developed e-payment tools, such as e-FAWATEERcom, in addition to the ability to pay through banks or bank transfers (SWIFT messages), according to Petra.