AMMAN — President of the Textile and Readymade Clothes Syndicate Sultan Allan called
on the government and the Central Bank of Jordan to postpone bank installments
on individuals and commercial entities to allow for liquidity to flow in the
market.
اضافة اعلان
He told J
ordan News that the winter season brings
“additional burdens” on Jordanian families, due to prioritizing spending to
fuel for heating households.
“Fuel becomes a priority, and its rising price
negatively affects the commercial movement, and contributes to a decline in
economic activity,” he said.
Allan explained that it is necessary to postpone
loan installments due from citizens, noting that this may be the most
appropriate move in the prevailing financial crunch. “Markets are witnessing
stagnation, and weakness in people’s purchasing power,” he said.
He explained that the high sales tax and interest
rates contribute to swelling inflation, which is envisaged to reach 6 percent
by yearend.
He said the previous decisions to postpone
installments proved that such a step “contributes to moving commercial traffic,
and reviving the various economic sectors”.
He expressed hope that there will be a comprehensive
review of the matter, in addition to reconsidering the sales tax, which will
contribute to reducing prices.
Munir Deyye, a former president of the Textile Readymade
Clothes Syndicate, said he opposed a deferment because citizens will end up
paying dearly in interest rates. “We should not think twice because postponed
payment will result in higher interests,” he said.
He explained that the solution lies in “reducing the
sales tax to increase the purchasing power, and raise the salaries to
commensurate with the high rate of inflation”.
In previous years, he said, “we called for
postponing installments, but it is no longer appropriate these days, especially
since during the COVID-19 pandemic period, loans were postponed and the burdens
on the citizen increased, due to the increase in interest on loans”.
He explained that the purchasing power is clearly
declining as a result of the high cost of living and the increased borrowing.
He noted that the purchasing culture of people has changed, given that
consumers are relying on buying only their necessities.
Naeem Ezz, a clothing merchant in Zarqa, told
Jordan
News that the sector is witnessing “a significant decline in the demand over
clothing”.
He called on the government to postpone loans on
citizens to encourage them to buy clothes.
“The competition between merchants has increased,
and the good are in stock from the last winter season,” he said. “This is a
negative indication and has serious repercussions on the sector.”
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