Merkel pledges $100 million loan for troubled Jordanian economy

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German Chancellor Angela Merkel reviews an honour guard upon her arrival at the Jordanian Royal Palace in Amman on June 21, 2018. (AFP)
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erman Chancellor Angela Merkel talks with German soldiers stationed in Jordan, June 21, 2018. (Reuters)
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German Chancellor Angela Merkel (L) and Jordan's King Abdullah II pose as they shake hands after a press conference at the Royal Palace in the Jordanian capital Amman on June 21, 2018. (AFP)
Updated 21 June 2018
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Merkel pledges $100 million loan for troubled Jordanian economy

  • Merkel visited Jordan amid an escalating domestic row over migration
  • The chancellor said Germany will provide the $100 million loan in addition to bilateral aid which amounts to about 384 million euros ($442 million) this year.

AMMAN: German Chancellor Angela Merkel on Thursday promised a $100 million loan to troubled Jordan, where mass protests over austerity measures forced the prime minister to resign earlier this month.
Merkel visited the kingdom amid an escalating domestic row over migration. Standing next to Jordan’s King Abdullah II, she made no reference to the crisis that’s straining her ruling coalition.
The chancellor said Germany will provide the $100 million loan in addition to bilateral aid which amounts to about 384 million euros ($442 million) this year. She said she hopes the additional funds will help Jordan carry out economic reforms sought by the International Monetary Fund.
The IMF is seeking such reforms to lower Jordan’s public debt-to-GDP ratio, which has risen to about 96 percent, in part because of the continued economic fallout from Syria’s civil war and other regional crises.
“We are aware of the challenges you face, both in the realm of security and in civil society development,” Merkel said, adding that she wished the government success in implementing “needed reforms.”
“The IMF, and it’s known for this, often has very ambitious ideas about reforms, and implementing them is anything but simple,” she said.
Merkel is meanwhile facing a serious crisis in her coalition.
Bavaria’s Christian Social Union party demands that some migrants should be turned back at Germany’s borders, and has given her two weeks to reach agreement with European partners. Interior Minister Horst Seehofer, the CSU’s leader, is threatening to go ahead unilaterally with his plans if she doesn’t — potentially threatening the governing coalition.
Leaders from a group of European Union countries, led by Germany and France, will meet Sunday to thrash out possible solutions.


Israel warns it will cut Palestinian tax transfer if killer’s family is paid

Updated 21 September 2018
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Israel warns it will cut Palestinian tax transfer if killer’s family is paid

  • American-born Ari Fuld, 45, was stabbed at a shopping mall in the Etzion bloc of Jewish settlements south of Jerusalem on Sunday.
  • His attacker, Khalil Youssef Jabarin, 17, from a village in the occupied West Bank, was shot at the scene and has since been in Israeli custody.

JERUSALEM: Israel will cut the tax revenue it transfers to the Palestinian Authority if it pays the family of the killer of an American-Israeli settler, Finance Minister Moshe Kahlon said on Friday.
Kahlon said he had instructed that any sum paid to the attacker’s family be withheld from tax revenue that Israel collects on behalf of the Palestinian Authority (PA) under interim peace deals.
“I will examine other ways to limit the economic activity of the terrorist’s family,” he said on Twitter.
American-born Ari Fuld, 45, was stabbed at a shopping mall in the Etzion bloc of Jewish settlements south of Jerusalem on Sunday. His attacker, Khalil Youssef Jabarin, 17, from a village in the occupied West Bank, was shot at the scene and has since been in Israeli custody.
It has not yet been decided whether Jabarin and his family will receive payments, according to a Palestinian official.
Israel has in the past withheld tax funds and in July enacted a law to financially penalize the PA by the amount of stipends paid to Palestinians jailed by Israel, their families, and the families of those killed by Israeli forces.
Israel says such stipends are a reward and encouragement for the prisoners’ actions against it. The Palestinian Authority says they are welfare payments to support them and their families.
The PA, which has limited self-rule in the West Bank, where Israel retains overall security control, pays stipends that start at 1,400 shekels ($392) after a prisoner has been detained for three months. Amounts differ depending on the length of sentence.
Earlier this year, US lawmakers enacted legislation to sharply reduce the annual $300 million in US aid to the PA unless it took steps to stop making what lawmakers described as payments that reward violent crime.