Amman: Prime Minister Jaafar Hassan announced that the government’s initiatives over the past five months have resulted in a 40% reduction in debt service costs for Eurobonds due this year, approximately $40 million in annual savings for the budget.
According to Jordan News Agency, the savings were achieved by repaying the Eurobonds through a combination of soft loans and Islamic bonds with lower interest rates. During a cabinet session held on Sunday evening, Hassan detailed the government’s strategy for repaying the outstanding Eurobonds. This involved securing soft financing from several friendly nations and issuing bonds that leverage new financial instruments, including Islamic bonds with reduced interest rates.
The approach aims to utilize the surplus liquidity of Islamic banks and offers the government new alternatives for financing. Hassan explained that the efforts have allowed the government to obtain low-interest financing sources for its maturing international bonds. Eurobonds totaling $1 trillion are due on June 29 and July 7 of this year. Another Eurobond is set to mature in 2026.
Hassan remarked, “This achievement aligns with our commitments to the House of Representatives, as outlined in the ministerial statement we provided. It marks an initial step that we hope to expand upon in the future as we continue to seek affordable financing tools at lower costs for the general budget, thereby contributing to a reduction in public debt interest.”