Finance Minister Ezzedine Kanakrieh said that the soft loans received by Jordan during the London Initiative contribute to providing the financing needs stipulated within the budget law at a lower cost, without increasing the debt volume in the budget.

Kanakrieh said in a statement on Friday that the soft loans received by Jordan during the London initiative and announced by the government, contribute to the achievement of the objectives of the strategy of public debt management, which seeks to reduce borrowing costs, and contributes to reducing the budget deficit and thus reduce the debt and target debt.

The finance minister said the loans would not lead to an additional increase in the size of the target debt, and are part of the government's plan to reduce the debt to the GDP ratio.

He pointed to the need to distinguish between the balance of public debt as an absolute number, which usually increases the value of the budget deficit and the ratio of debt to GDP, which the government seeks to reduce annually. As for the financial grants, part of it will be spent through donor countries, while another part will be included in the general budget, which will contribute to cover part of the costs of capital projects, and ultimately will reflect growth rates and achieve sustainable development.