Amman: Jordan Cooperative Corporation Director General (JCC) Abdul Fattah Al-Shalabi announced the Cabinet's decision to exempt the corporation's debtors from 50% of accumulated legal interest and penalties. This decision will apply if borrowers repay the outstanding principal and the remaining charges, benefiting borrowers, their heirs, and cooperative societies.
According to Jordan News Agency, Al-Shalabi highlighted that the outstanding loans, originally owed to the former Cooperative Bank before its closure in the 1980s, amount to JD4.66 million, with accumulated legal interest reaching JD1.418 million. Approximately 1,600 borrowers, including individuals and cooperative societies, remain indebted.
Al-Shalabi explained that many of these loans have been overdue for more than 40 years, and most of the original borrowers have since passed away. Consequently, the corporation is seeking repayment from their heirs, following regulations on public fund recovery and guidelines from the Ministry of Finance.
He urged borrowers and their heirs to visit the corporation and take advantage of the Cabinet's decision, settling their loans before the year's end. Al-Shalabi noted that previous decisions waiving interest and penalties for those repaying the principal significantly improved debt collection rates and strengthened the corporation's financial position.
He added that the initiative has boosted the liquidity of the Cooperative Development Fund, established under the 2025 Cooperatives Law, while reducing administrative and legal costs associated with judicial claims and enforcement procedures.
The decision will also lead to the removal of liens on the properties of approximately 1,600 borrowers, their heirs, and cooperative societies. This will enable them to regularize their financial status, regain control of their assets, and alleviate social and economic burdens.
Earlier on Sunday, the Cabinet approved the decision granting JCC debtors a 50% exemption from accumulated legal interest and penalties, contingent on repaying the outstanding principal and remaining legal charges by the end of the year.