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جراءة نيوز
Government Controls on Debt Interest
The Jordanian government successfully reduced the cost of servicing public debt in 2025. The increase in loan interest expenses decreased from 396 million dinars in 2024 to 90.9 million dinars, a decline of nearly 77%. This was achieved through early refinancing of high-cost loans and converting a significant portion of its debt into concessional loans with longer maturities and lower interest rates, especially amid declining global interest rates. Although the total debt interest grew from 1.75 billion dinars in 2023 to 2.24 billion dinars in 2025, the rate of increase slowed markedly, with the growth rate of domestic and external debt interest decreasing from 22.6% to 4.2%. This helped narrow the fiscal gap and improve debt management. This success reflects the government's efforts in managing the cost of debt and optimizing its structure through diversification of funding sources and risk reduction, thereby creating a larger financial space to implement economic reform programs and promote growth.
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