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Jordan’s Public Debt Amounts to $38.69 Bn

Jordan’s Public Debt Amounts to $38.69 Bn
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Jordan’s Public Debt Amounts to $38.69 Bn

Jordan’s Public Debt Amounts to $38.69 Bn

Jordan’s public debt has amounted to JD27.443 billion ($38.69 billion) by the end of January 2018, constituting 95.6 percent of the gross domestic product (GDP) compared to JD27.296 billion ($38.45 billion) in the same period in 2017, the Finance Ministry said on Monday.

The ministry said that the debts of the National Electric Power Company (NEPCO) and the Water Authority of Jordan (WAJ) reached JD 3.7 billion by the end of January this year.

The net public debt stood at JD 25.790 billion at the end of January 2018, which constituted 89.8 percent of the 2017 GDP, the ministry said.

Regarding the outstanding external debt, it increased to JD 11.87 billion, or 4.41 percent of the estimated GDP at the end of January 2018, compared to JD 11.86 billion, or 41.5 percent at the end of 2017.

On the other hand, the external debt service has amounted to about JD 158.7 million in January 2018, distributed as JD 110.4 million in installments and JD 48.3 million as interest.

As for the net balance of internal public debt (public budget and budgets of independent institutions), it rose at the end of January to reach about JD 13.916 billion, or 48.5 percent of GDP, compared to about JD 13.568 billion or 47.4 percent of GDP at the end of 2017, up JD 347.2 million.

In a related matter, the Jordan Jewelers Association (JJA) and the Standards and Metrology Organization (JSMO) of the Jordanian government reached a consensus decision to cancel the sales tax on gold and jewels.

JJA President Osama Imseeh told reporters that it was agreed to cancel the 16 percent tax on the gold coin and keep the stamping fee.

Imseeh added that the meeting, which brought together representatives of the association with the Director of JSMO and the Director General of income and sales tax on Monday, resulted in a consensus on the cancellation of the tax, and the traders ended their strike after the agreement and opened their shops.

Notably, gold traders had decided to carry out a comprehensive strike and closed their shops in protest against the government's decision to impose a 16 percent tax on the gold fee imposed recently.

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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.