Gulf nations pledge $2.5bn aid package to Jordan

Jun 12, 2018, 07:53 IST | Agencies

The money from Kuwait, Saudi Arabia and the United Arab Emirates will go toward a deposit in Jordan's Central Bank, cover World Bank guarantees for the kingdom, offer budget support and finance other development projects

Gulf nations pledge $2.5bn aid package to Jordan
(From right) King Abdullah II with King Salman, Sheikh Sabah al-Ahmad al-Sabah and Sheikh Mohammed bin Rashid al-Maktoum. Pic/AFP

Three Gulf Arab states pledged $2.5 billion in aid to Jordan in an effort to stabilise the US-allied kingdom as it faces its worst protests in years over government austerity plans that include tax increases.

The money from Kuwait, Saudi Arabia and the United Arab Emirates will go toward a deposit in Jordan's Central Bank, cover World Bank guarantees for the kingdom, offer budget support and finance other development projects.

The hope is the five-year aid package, which mirrors a similar aid package offered by Gulf states in 2011, will help Jordan come up with a new, more-palatable austerity plan to satisfy international lenders and its public.

The money came after a meeting in Mecca attended by Jordan's King Abdullah II, Saudi King Salman, Kuwait's ruling emir Sheikh Sabah Al Ahmad Al Sabah and Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum, the UAE's vice president and prime minister. Also on hand was Saudi Arabia's assertive 32-year-old Crown Prince Mohammed bin Salman.

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