An official source stated that recent claims suggesting that Jaafar Hassan’s government is the most indebted are inaccurate. The source explained that data from the Ministry of Finance show that public debt increased by about 2.7 billion dinars, reaching 46.8 billion dinars.
اضافة اعلان
The source clarified that an objective reading of the figures indicates that around 58% of this increase, or about 1.5 billion dinars, represents interest payments on accumulated domestic and external public debt from previous years. This also includes the settlement of financial obligations, such as over 100 million dinars in arrears and the repayment of tax refunds from previous periods. According to the source, the IMF’s methodology for assessing fiscal performance excludes interest payments.
The remaining 1.1 billion dinars of the debt increase includes 212 million dinars obtained through a concessional loan at low interest rates, which temporarily raised the debt balance. These funds will be used to repay part of the Eurobond issuance maturing in January 2026, totaling about 710 million dinars. Thus, the government effectively borrowed around 900 million dinars to cover the fiscal deficit, part of which financed capital expenditures, which the source described as economically sound in the long term.
The source added that the government remains committed to implementing the General Budget Law, which estimates a fiscal deficit of about 2.3 billion dinars for 2025, in addition to deficits at the National Electric Power Company and the Water Authority, amounting to roughly 820 million dinars. The government, he said, has initiated a qualitative shift in debt management policy, focusing on cost efficiency, sustainability, and innovative solutions.
This strategy resulted in a 40% reduction in the cost of servicing Eurobond debt that matured in early June 2025, saving around $40 million annually for the budget. This was achieved by replacing part of the international bonds with concessional financing and low-interest Islamic sukuk, benefiting from liquidity in Islamic banks and cooperation with Arab and international financial institutions.
The source also highlighted that the recent IMF staff-level agreement, reached in October 2025 under both the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), reaffirmed the government’s commitment to gradually reducing public debt through fiscal consolidation, while protecting priority social and developmental spending. The IMF expressed confidence in Jordan’s debt sustainability, despite its nominal increase, citing the government’s ability to meet its obligations—the key measure of debt sustainability.
The source emphasized that the government is committed to reducing the debt-to-GDP ratio to 80% by 2028, noting that the budget framework reflects this goal in line with the fiscal correction program. He added that this path is a safe trajectory that ensures debt reaches the targeted level by 2028.
Finally, the source stressed that evaluating government performance should also consider other macroeconomic indicators, which have shown positive results driven by more than 162 economic stimulus measures. These include a 2.8% GDP growth rate in the second quarter of 2025—the highest since the Gaza war—fueled by a 7.5% increase in tourism, an 8% rise in national exports, a 36.6% growth in foreign investment during the first half of the year, and record-high foreign reserves at the Central Bank of Jordan reaching $24 billion, reflecting the soundness of the government’s economic policies and their positive impact.
