A senior Jordanian government official has said the Jordan Hotels Association is negotiating with local commercial banks to reschedule over JD180 million in debts due to the inability of many hotels to repay loans secured over the past few years.
Minister of Tourism and Antiquities and Minister of Information Talib Rifai was quoted by the Jordan Times as saying that among the issues the two parties are negotiating is the issuance of $250 million in bonds to assist these banks with repaying the debt.
Rifai said that the government was trying to facilitate this agreement by using its "good offices" with the Central Bank of Jordan to approve such an agreement between the hotels and the local banks.
"I think the two sides have reached an advanced stage and both are on the verge of concluding an agreement in that direction," the minister said.
"The agreement could involve the issuance of bonds which will be directed to the domestic market. The government's role is merely as a facilitator," Rifai told the Amman-based paper.
Tourism industry officials believe that Jordanian hotel losses could amount to over $200 million due to the cancellation of reservations following the Sept. 11 attacks on US.
Citing official figures, the number of flights from and to Jordan declined by 35 percent following the attacks – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
