Jordan’s public debt rises11% ytd to USD 26bn at end-Sept 2013

By bne IntelliNews November 12, 2013

Jordan’s net public debt (domestic and external) increased 11.1% ytd to JOD 18.42bn (USD 26bn) as of end-September 2013, equalling 76.8% of the full-year forecast GDP, state news agency Petra reported citing data from the finance ministry. The debt growth quickened from 8.0% ytd at end-August lifted mainly by rising external debt. Jordan has recently sold USD 1.25bn of seven-year Eurobonds earning a 2.503% coupon. It has also got around USD 1.043bn from the IMF under the USD 2.06bn three-year Stand By Agreement approved in 2012. This will boost also Jordan’s already rising external debt by end-year. The net public debt will increase 20% to JOD 20bn (USD 28.2bn) in 2013, accounting to nearly 80% of the forecast GDP, according to government officials.

The public debt stood at JOD 16.58bn at end-2012, equalling to 75.5% of the GDP.

The net domestic public debt (gross outstanding domestic public debt minus government deposits in banks) rose 6.2% ytd to JOD 12.37bn at end-September comprising 51.6% of the full-year GDP. The reading was lifted by strong domestic debt issuances to meet budget needs mainly to cover water and electricity expenses.

The external public debt (budgetary and guaranteed) jumped 22.7% ytd to JOD 6.05bn at end-September equalling to 25.2% of GDP.

Interest payments on Jordan’s public debt will increase to JOD 1bn (USD 1.41bn) in 2015 from the current forecast of JOD 800mn for 2013, the finance ministry recently said. In 2013, public debt servicing will account for 10.8% of the state budget spending. 

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