Loan Commitments

The AMF extended 3 loans to its borrowing member countries in 2019, with a total value amounting to approximately AAD 77.8 million, equivalent to US $321 million. Two loans (Compensatory and Ordinary Loans) were extended to the Republic of Sudan, each of the value of AAD 27.4 million. The Compensatory Loan was to finance the sudden shock in the balance of payments, while the Ordinary Loan supported a reform program to consolidate economic stability. The AMF also extended a loan, amounting to AAD 23 million, to the Hashemite Kingdom of Jordan under the Structural Adjustment Facility to support a reform program in the financial and banking sector.

Adding the value of the new loans that the AMF extended to its member countries during 2019 to the loans extended since the inception of the lending activity in 1978, the total value of the loans provided by the Fund to its member countries, up to the end of 2019, amounts to AAD 2.4 billion, equivalent to about US $10 billion. The number of member countries benefited from the 184 loans extended by the Fund since 1978 reaches 14 countries.

Loans extended by the Fund to support the balance of payments (Automatic, Extended, Ordinary, and Compensatory) were at the forefront of the facilities provided by the Fund since the beginning of its lending activity in 1978, representing 60.7 percent of the total loans provided. The Structural Adjustment Facility extended for both the banking and financial sector and the public finance sector came second with a share of 29.9 percent. The Trade Facility accounted for 2.7 percent, and the Oil Facility stood at 1.4 percent, while the SME’s Conducive Environment Support Facility recorded 5.4 percent.

The total disbursements on contracted loans amounted to AAD 111.1 million during 2019, compared to AAD 173.2 million during 2018. In line with loan repayment schedules, borrowing member countries repaid a total of AAD 147.7 million during 2019, representing installments on contracted loans. As a result, the balance of outstanding loans amounted to about AAD 466 million, at the end of 2019, compared to AAD 502.6 million at the end of 2018.