Latest news with #public debt
Reuters
17-07-2025
- Business
- Reuters
Japan must be mindful of credit rating downgrade risk, bank lobby head says
TOKYO, July 17 (Reuters) - Japan must be mindful of the risk of a credit rating downgrade if an expansion in public debt runs out of control, the head of the country's banking lobby said, as lawmakers ramp up calls for big spending ahead of an upper house election on Sunday. Japanese government bond (JGB) yields rose to multi-decade highs this week on market expectations that a strong performance by opposition parties calling for big spending and tax cuts could lead to an increase in Japan's already huge debt-pile. Junichi Hanzawa, chairman of the Japanese Bankers Association, said the recent rise in bond yields likely reflected investors' anxiety over the market outlook. "If debt expansion runs out of control, it could become difficult for the government to smoothly sell bonds in the market" as the balance of Japan's public debt is already extremely high, Hanzawa told a news conference on Thursday. "If this happens, we must be mindful of the risk of a JGB credit rating downgrade," he said. Recent media polls showed Prime Minister Shigeru Ishiba's ruling coalition could lose its majority in the upper house election. Such an outcome could force Ishiba to abandon his hawkish fiscal tilt, boost spending and heed opposition calls to cut Japan's sales tax rate, analysts say. Moody's Ratings has said an increase in tax cut pressure could be negative for Japan's rating depending on the size and duration of the cut. It rates Japan A1, the fifth-highest level. A credit rating downgrade could trigger a triple selling of JGBs, yen and Japanese stocks - and boost the cost of dollar funding for Japanese banks.
Bloomberg
17-07-2025
- Business
- Bloomberg
Japan Banks Flag Debt Downgrade Risk as Yields Jump Before Vote
Japan's biggest bank industry group warned of the risks of a downgrade in the nation's credit rating as politicians make election pledges that could swell the public debt. A recent jump in yields reflects mounting uncertainty in the government bond market ahead of the upper house election on Sunday, Japanese Bankers Association Chairman Junichi Hanzawa said at a regular news briefing in Tokyo on Thursday.
Zawya
16-07-2025
- Business
- Zawya
Jordan's domestic revenues reach $5.6bln in first five months of 2025
AMMAN — Jordan's domestic revenues rose by JD224.1 million during the first five months of 2025, reaching JD4.067 billion, up from JD3.843 billion during the same period in 2024, according to public finance figures released on Tuesday. The increase reflects continued efforts to enhance revenue collection and improve fiscal performance amid regional and global economic challenges, the Jordan News Agency, Petra, reported. As of the end of May 2025, the Kingdom's public debt stood at JD35.8 billion, representing 92.7 per cent of GDP. The temporary rise in debt was attributed to financing the budget deficit, covering the operational losses of the National Electric Power Company (NEPCO) and the Water Authority, and securing concessional loans from friendly countries. During March and April, the government obtained a total of $1 billion in soft loans and issued Islamic sukuk at a competitive interest rate of 4.8 per cent, aiming to reduce debt servicing costs, ease fiscal pressures, and support capital development projects. The $1 billion was deposited with the Central Bank of Jordan and included in the public debt balance as of the end of May. In June, the government repaid $1 billion in Eurobonds without issuing new bonds, thereby avoiding higher interest rates that could have reached up to 9 per cent amid current global and regional financial conditions. The public debt is expected to decline to approximately JD35.3 billion by the end of June. The debt-to-GDP ratio, excluding bonds held by the Social Security Investment Fund, is projected to fall to around 91 per cent, reflecting a gradual improvement in Jordan's fiscal position. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
