Amman, Aug. 2 (Petra) -- Jordan Cooperative Corporation Director General (JCC) Abdul Fattah Al-Shalabi said the Cabinet's decision to exempt the corporation's debtors from 50% of accumulated legal interest and penalties, provided they repay the outstanding principal and the remaining charges, serves the interests of borrowers, their heirs and a broad segment of citizens, as well as cooperative societies.
Al-Shalabi told the Jordan News Agency (Petra) on Sunday that outstanding loans owed to the former Cooperative Bank, before it ceased operations in the 1980s, total JD4.66 million, while accumulated legal interest has reached JD1.418 million.
He said around 1,600 borrowers, including individuals and cooperative societies, remain indebted, noting that collections from cooperatives are pursued through their members and management committees.
Al-Shalabi explained that the loans have been overdue for more than 40 years and that most of the original borrowers have since died. As a result, the corporation has been seeking repayment from their heirs in accordance with regulations governing the recovery of public funds and the Ministry of Finance's instructions.
He urged borrowers and their heirs to visit the corporation and take advantage of the Cabinet's decision by settling their outstanding loans before the end of the year.
According to Al-Shalabi, previous decisions to waive interest and penalties for borrowers who repaid the principal had significantly improved debt collection rates, strengthened the corporation's financial position, and increased the recovery of outstanding principal.
He added that the measure has also enhanced 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 initiative will also allow the removal of liens on the properties of approximately 1,600 borrowers, their heirs and cooperative societies, enabling them to regularize their financial status, regain control of their assets and ease the social and economic burdens they face.
Earlier on Sunday, the Cabinet approved a decision granting debtors of the Jordan Cooperative Corporation a 50% exemption from accumulated legal interest and penalties, on the condition that they repay the outstanding principal and the remaining legal charges by the end of this year.
//Petra// AF
