Government's success in managing debt costs
In 2025, Jordan experienced a clear shift in public debt management. The government succeeded in curbing the rising cost of debt service and significantly reducing the interest expense from 396 million Jordanian dinars in 2024 to 90.9 million dinars in 2025, a decrease of approximately 77%. This improvement is attributed to proactive management strategies, including refinancing debt at lower interest rates, utilizing concessional financing, and reducing borrowing costs through various instruments, such as repaying high-value Eurobonds. Despite an overall increase in debt interest from 1.75 billion dinars in 2024 to 2.24 billion dinars in 2025, the growth rate slowed considerably, decreasing from 22.6% to 4.2%. These policies are important because they have freed up greater financial space for development and economic growth, made debt management more efficient by diversifying funding sources and reducing risks, and enhanced fiscal sustainability, thereby alleviating pressures on the national budget and foreign reserves.
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