Ammon News - AMMONNEWS - Japan will provide Jordan with a soft loan worth 196 million U.S. dollars to support the kingdom's development efforts, the Jordanian minister of planning and international cooperation said Wednesday.

"The agreement seeks to support Jordan's financial position and development policies," Imad Fakhoury told a press conference in the capital Amman.

Earlier in the day, the two sides signed a memorandum of understanding for the loan, while a final agreement will be inked next week.

The minister pointed out that the loan will be paid back over a period of 25 years with a grace period of up to seven years and an interest rate of 1.7 percent.

He voiced appreciation for Japan's continued support for his country.

Since 1999, Japan has extended some 785 million U.S. dollars to Jordan, of which 451 million dollars in grants, while the rest in soft loans, according to figures by the ministry.

*Xinhua