Prime minister says gov't lowers servicing cost of Eurobond debt by 40%

Jordan Times

06-04-2025

Prime Minister Jafar Hassan says, during a Cabinet session on Sunday, that the government has reduced the cost of servicing of this year's Eurobond debt by 40 per cent over past five months (Petra photo)
AMMAN — The government over the past five months has reduced the cost of servicing of this year's Eurobond debt by 40 per cent, resulting in annual savings of approximately $40 million for the national budget, Prime Minister Jafar Hassan announced on Sunday.Speaking at a Cabinet meeting, the prime minister stressed that the reduction was achieved by repaying the maturing Eurobond through a package of concessional loans and low-interest Islamic Sukuk, according to the Jordan News Agency, Petra.He noted that these alternative financing instruments were secured in cooperation with allied countries, reflecting a strategic shift towards more sustainable debt management. Hassan explained that the government's approach not only eased the fiscal burden but also introduced innovative financial instruments to diversify public financing, notably the Islamic Sukuk that has allowed the government to tap into excess liquidity in Islamic banks while providing a low-cost borrowing option.The government is preparing to meet upcoming Eurobond obligations totalling $1 billion due on 29 June and 7 July this year, he said, adding that "another Eurobond is due in 2026".
"This move is in line with the commitments we made in our policy statement to the Lower House," the Prime Minister said. "It is a first step in a broader effort to secure affordable financing options that will ease pressure on the general budget and reduce interest payments on public debt."