Jordan .. Public Debt Around 35.8 Billion Jordanian Dinars

SadaNews Economy - Data from Jordan's public finances showed that local revenues increased by approximately 224.1 million dinars during the first five months of 2025, reaching a value of 4.067 billion dinars, compared to a value of 3.843 billion dinars for the same period last year.

The public debt recorded during May 2025 was about 35.8 billion dinars, or 92.7% of the Gross Domestic Product (GDP). This temporary increase in the public debt balance is a result of financing the budget deficit and covering losses of the National Electric Power Company and the Water Authority, and exceptionally due to the government obtaining concessionary loans worth 1 billion dollars from friendly countries during March and April, as well as issuing Islamic bonds at a competitive interest rate of 4.8% to reduce interest payments, alleviate burdens on public finances, and finance capital projects.

An amount of 1 billion dollars was deposited with the Central Bank of Jordan, and these loans were accounted for in the public debt balance until the end of May. It is noteworthy that 1 billion dollars in Eurobonds were repaid in June without resorting to issuing new Eurobonds, which could have an interest rate of around 9% under the exceptional circumstances the world and the region are currently facing.

It is expected that the debt balance will decrease to approximately 35.3 billion dinars, and that the debt-to-GDP ratio, excluding what the Social Security Investment Fund holds, will decline to about 91% by the end of June.