AMMAN – Finance Minister Mohamad Al-Ississ revealed on Wednesday that Jordan’s total public debt in 2024 is expected to reach JD33.534 billion, marking a slight decrease from the previous year’s debt-to-GDP ratio. In a meeting with economic journalists and columnists, Al-Ississ provided detailed insights into the country’s financial strategy for the upcoming year.
According to Jordan News Agency, the projected debt service for the next year will be JD1.980 billion. He outlined the composition of funding sources for 2024, which include JD39 million from external loans and capital project finance, and JD1.660 billion in loans from international institutions to support the budget. To bridge the budget gap, the government plans to issue JD648 million in local bonds denominated in U.S. dollars and secure JD5, 150 million as internal loans. This strategy aims to manage the net public debt, which is estimated to be around JD2.069 billion, to effectively close the budget deficit.
The Finance Minister highlighted that Eurobonds, due in the years 2025 to 2030, are not maturing next year, and the decision to issue new Eurobonds will depend on market conditions and the goal of reducing debt servicing costs. The draft budget for 2024 factors in a continued global economic stagnation and assumes a stable regional situation without further escalation.
Al-Ississ emphasized the resilience of the Jordanian economy in the face of regional crises, including the refugee influx and the disruption of Egyptian gas supplies. He projected foreign grants for the next year at JD724 million, with contributions from various international sources including the United States, the Gulf region, the European Union, and the Mecca Summit and the UAE. He clarified that public revenues amount to JD10.303 billion, of which JD724 million are external grants, thus dismissing the notion that Jordan’s budget heavily relies on grants.
The meeting, also attended by Minister of Government Communications and government spokesperson Muhannad Mubaideen, included discussions on the financial outlook for government units. Majdi Al-Shuraiqi, Director General of the General Budget Department, reported a forecasted total revenue of JD852 million against expenditures of JD1.662 billion for government units. The deficit for these units is expected to be JD810 million, primarily attributed to the Jordan Electric Power Company (JEPCO) and the Water Authority.