AMMAN – A government source confirmed to AlGhad newspaper today that the government does not seem to have the intention to further extend the exemption for delinquent debtors and defaulters from imprisonment, as per Defence Order No. (28), which expires on April 30.
According to AlGhad, the unnamed source explained that any such decision, or extension of such decisions in this case, is usually issued before the end of order’s validity period.
In statement to Eye on Business, Attorney and Legal Expert Dema Kayed highlighted that without the exemptions afforded by Order (28) and the extensions therein, the amended execution laws will be enforceable for debts larger than JOD 5,000.
The same applies to delinquent bank loans, unless the loan was issued against collaterals, such as in the case of mortgages, she added, in which case the bank will foreclose on the mortgaged property.
The amendments to the execution law stipulate that a debtor may not be imprisoned for a duration exceeding 60 days per year for each count of delinquent debts, at a total not exceeding 120 days per year, for all counts of delinquent or unpaid debts, Kayed underlined.
“On one hand, this is good for creditors, and banks, but on the other, this is bad news for debtors with delinquent and unpaid debts,” the legal expert said.
Since the beginning of 2022, the government extended the debt imprisonment exemptions several times, the last of which was in January 2023.
Jordan’s Prime Minister Bishr Khasawneh had extended the defence order until April 30, with amendments to the first and second clauses of the defence order.
The amendment to the first clause lowered the ceiling for debt imprisonment exemptions from JOD 100,000 to JOD 20,000, extending the exemptions until the end of April.
Pros and Cons
In September last year, the Jordan Bar Association (JBA) appealed to His Majesty King Abdullah to suspend the provisions of the defence order, as reported by Amman Net.
JBA President Yahya Abu Aboud claimed, in a letter sent to the Prime Minister, that the exemptions are “causing financial distress to Jordanians”, according to Jordan News.
In a statement carried by AlGhad, Constitutional Law Professor Laith Nasrawin said that the reduction of the exemption ceiling, or the annulment of the order altogether, is not likely to incur negative repercussions for Jordan’s prisons and rehabilitation system.
Last Wednesday, Minister of Justice Ahmed Ziadat confirmed Nasrawin’s expectations.
During a meeting of the Parliamentary Legal Committee, he said that the enforcement of the execution laws, and its recent amendments; as to the imprisonment of debtors in Jordan, in light of the amendments to the defence order, did not create any problems on the ground.
The number of imprisoned debtors, as of April 25th, stood at 122 people, the minister explained.
Since the ceiling was reduced to JOD 20,000, earlier this year, the number grew by no more than 28 people, according to Ziadat, indicating that the ceiling reduction did not have a significant impact on prison populations, so far.
Overall, approximately 158,131 people are currently wanted on warrants related to debt delinquency cases, 68% of whom have a debts less than JOD 5,000, and 87% are wanted for debts below JOD 20,000.
On the other hand, Director of the Department of Correction and Rehabilitation Centers Brig. Gen. Falah Majali warned on Sunday that correctional facilities in Jordan are at 163% capacity.
As of January this year, the number of debtors wanted in civil debt lawsuits stood at 157,367 people, AlGhad reported, including 137,715 people whose debts are less than JOD 20,000.
Whereas more than 1.2 million people have active loans issue by banks operating in Jordan, with the unemployment rate standing at 23%, as reported by London-based website Al-Araby Al-Jadeed.
The annulment of defence order, by way of non-renewal, will cause major social issues in Jordan, as it threats thousands of Jordanians who are unable to pay their debts, member of the Parliamentary Financial Committee MP Dirar Harasis said.
