AMMAN — The Cabinet, during a session chaired by Prime Minister Jafar Hassan on Sunday, reviewed municipal performance and discussed mechanisms to enhance governance at the Cities and Villages Development Bank (CVDB), as part of ongoing efforts to strengthen and sustain high-quality municipal services.

 

During the session, the Cabinet approved a set of recommendations submitted by the CVDB board, including a comprehensive debt restructuring plan for municipalities, according to a Prime Ministry statement.

 

The plan aims to ease the financial burden on local governments, facilitate repayment of outstanding debts to the bank, and ultimately improve public service delivery.

 

Under the plan, municipalities will be allowed to reschedule debts accumulated over several years and will be exempt from a total of JD170 million in previously unpaid interest. Interest rates will also be reduced from 7.5 per cent to between 0.5 per cent and 2 per cent, depending on the duration of the rescheduling, the statement added.

 

In return, municipalities are required to submit detailed financial reform plans outlining measures to cut costs and increase revenues. Those facing significant financial distress must also obtain approval from municipal councils for rescheduled debts to ensure accountability and long-term sustainability.

 

Officials said the initiative is expected to enhance both municipal service delivery and the financial performance of the CVDB, ensuring the bank maintains sufficient liquidity to respond to emergency needs, the statement said.

 

The Cabinet received a briefing from Minister of Local Administration Walid Masri on the work of municipal committees formed following the dissolution of elected councils in early July.

 

Masri reported significant progress by the committees in four key areas: environmental cleanliness, financial management, administrative efficiency, and public services, based on findings from a recent field survey evaluating committee performance.