Banks Association: Raising Interest Rates Will Not Affect Individual Loan Installments or Their Total Value

Al-Mahrouq added regarding deposits that the matter is left to the relationship between the bank and the customers.

He pointed out that new loans are subject to the future agreement between the bank and the customer, so the decision was only concerned with existing loans.

He explained that the total existing loans for individuals reached nearly 14 billion Jordanian dinars by mid-2026.

The Banks Association in Jordan announced on Sunday that the banks operating in the Kingdom will not reflect the increase resulting from the decision of the Central Bank of Jordan to raise the interest rates of monetary policy instruments by 25 basis points, on the interest rates of existing loans granted to individuals, so that their monthly installments remain without an increase due to this increase, thereby avoiding borrowers additional financial burdens and supporting their ability to meet their obligations.

The Association clarified that this step comes despite the increase in the cost of funds for banks, including the rise in interest rates on deposits, especially in foreign currencies, following the decision of the US Federal Reserve to raise interest rates by 25 basis points.

The Association confirmed that this approach reflects the commitment of the Jordanian banking sector to take into account the economic circumstances of citizens and to achieve a balance between the interests of customers and the preservation of the sector's solidity and stability.