AMMAN —
Standard & Poor's (S&P) Credit
Rating Agency has maintained Jordan's long-term sovereign credit rating at B+/B
with a stable outlook.
اضافة اعلان
S&P highlighted the impact of the war on
the
Gaza Strip on Jordan's economic landscape, stating that the war led to
increased regional tension and affected Jordan's tourism sector and trade
activities. Despite these challenges, S&P noted that its stable outlook for
Jordan indicates that the conflict will not escalate beyond Gaza, Al-Mamlaka TV
reported.
The agency said, "We believe Jordan will
effectively leverage international support and has adequate domestic policy
buffers to manage the conflict's impact on tourism and the broader economy.”
S&P attributed the preservation of
Jordan's credit rating to the effectiveness of its financial policies in
maintaining stability despite regional challenges, highlighting the success of
Jordan's public finances in reducing the deficit and ensuring a safe downward
trajectory for debt levels. Additionally, S&P commended Jordan's monetary
policies for maintaining stability in the financial and banking sectors, which
have proven crucial in navigating external crises such as Israel's recent
waron Gaza.
The agency also underscored the significance
of Jordan's Financial and Monetary Reform Program, implemented in collaboration
with the International Monetary Fund (IMF), and the strong international
support extended to Jordan.
Recently, the IMF board approved a new program
for Jordan, the
Extended Fund Facility (EFF), valued at $1.2 billion over four
years, to continue implementing economic and financial reforms following the
successful completion of previous program requirements.
In terms of public finances, S&P's
forecasts indicate the success of fiscal policy in reducing the government's
deficit to 1.1 percent of Gross Domestic Product (GDP) by 2024, with
projections indicating a decrease in the government's net debt ratio to 78.9
percent by 2027.
Additionally, in a statement released on
Saturday, the Ministry of Finance emphasized that Jordan's maintenance of its
credit rating comes at a crucial juncture, amidst regional challenges and
geopolitical uncertainties. This announcement coincides with a period marked by
a wave of credit rating downgrades affecting countries worldwide, due to the
prevailing uncertainty in the region.
Minister of Finance, Mohamad Al-Ississ said,
"Maintaining Jordan's credit rating despite the repercussions of the war
in Gaza and the ongoing attacks in the West Bank, despite the increasing
regional uncertainty, represents a new certificate and confirmation from
international institutions of the strength of Jordan's public finances, and
evidence of the effectiveness of the economic and financial policies adopted by
the government to maintain financial stability."
For his part, Governor of the
Central Bank of Jordan (CBJ), Adel Al-Sharkas, echoed similar sentiments, highlighting the
stability of Jordan's economy amidst global and regional challenges. Sharkas
underscored the success of CBJ in establishing monetary and financial
stability, maintaining the fixed exchange rate of the dinar, and bolstering
foreign reserves to $18.1 billion, emphasizing the resilience and efficiency of
the Jordanian banking sector in adhering to international banking practices and
managing risks effectively.
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