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FINANCIAL NEWS
Jordan’s debts soar to $13.9 billion
24 Jul 2010
(MENAFN) Reuters reported that Jordan’s gross domestic and foreign debt continued to rise in May with remittances and aid flows still pressured by the global downturn, but government borrowing is still likely to remain below its debt ceiling.
Total debt rose 2.4 percent to $13.9 billion at the end of May compared to the end of last year, finance ministry data showed in Amman.
The latest preliminary figures show that public debt now comprises 56.2 percent of projected gross domestic product (GDP) in 2010, falling from 59.4 percent in 2009 due to forecasts of a lower budget deficit this year.
The monetary authorities have resorted since last year to issuing more Treasury bills and bonds as the country resorts to domestic borrowing to finance growing public debt.
Public debt is due to hit a record $14 billion this year, nearing a legal limit of 60 percent of GDP, as recession reduces local revenue and foreign aid. Unemployment is about 13 percent.
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