Branches of Jordanian banks operating in Palestine have reported record level activity and lucrative business in the first seven months of 2000 as reported in the Central Bank of Jordan (CBJ) bulletin.
The combined balance sheet totals of the branches reached JD1,958 billion by the end of 1999 and have risen to JD2,290 billion by the end of July 2000, registering an increase of 17 percent, according to the CBJ bulletin.
Credit facilities offered by the 80 bank branches stood at JD409 million at the end of 1999 and reached JD619 million between January and the end of July this year, an increase of over 51 percent.
The credit facilities in Jordanian dinar, US dollar and other foreign currencies benefited individuals and economic growth, the bulletin pointed out.
According to the director of the Jordan National Bank's investment department, Samer Sunnuqrot, five branches offered loans for housing and other real estate activities and reported flourishing business in these fields.
He said imminent peace settlement expectations have driven up spending on construction, which in turn breathed life into the national economy.
Bankers in the Palestinian territories say they are not apprehensive of the idea of issuing a Palestinian currency so long as Jordan and Palestine are pursuing continual coordination aimed at safeguarding the interests of the two sides.
They also noted that Jordanian banks operating in Palestine have accumulated collective reserves totaling $2.7 billion, registering an increase of 19 percent over the past year's figures.
Hani Saudi, a Jordanian economist, attributes the rising investment activities in the West Bank and Gaza Strip to the huge financial assistance offered to the Palestinian National Authority by donor nations which are channeled towards infrastructure services.
Palestinians trust in the Jordanian dinar and their larger deposits are in the Jordanian currency especially in the West Bank, he added.
Saudi said that in the Gaza Strip the US dollar is more in circulation in the absence of a Palestinian currency.
Palestinians refrain from depending on the Israeli shekel as a currency for their savings, according to Saudi. — ( Jordan Times )
By Hassan Shobaki
© 2000 Mena Report (www.menareport.com)
