Jordan cuts Eurobond debt servicing costs by 40%, saving $40 million annually

Prime Minister Dr. Jaafar Hassan announced Sunday that his cabinet’s efforts over the past five months have successfully reduced the cost of servicing the country's Eurobond debt by 40 percent for the loan maturing this year, resulting in an annual budget saving of approximately USD 40 million.

Speaking during a Cabinet session, Hassan said the bonds were repaid through a combination of concessional loans and low-interest Islamic sukuk, leveraging surplus liquidity in Islamic banks. He added that the government also secured soft financing from partner countries and issued new financial instruments to ease fiscal pressures.

The prime minister noted that the government has sourced low-interest funding to cover upcoming international bond obligations, including USD 1 billion in Eurobonds maturing in June and July 2025, as well as another loan due in 2026.

Hassan emphasized that this step is part of fulfilling commitments outlined in the government's policy statement to Parliament, adding that the government remains committed to seeking further concessional financing tools to reduce the burden of public debt.