Moody's raises Jordan's credit rating for the first time in 21 years
A man holding Jordanian dinar banknotes (Shutterstock)
ALBAWABA – The Finance Ministry in Jordan has announced that the sovereign credit rating agency Moody’s has raised Jordan’s credit outlook in local and foreign currency from “stable” to “positive,” upgrading the country’s overall rating from B1 to Ba3.
The government’s efficacious execution of extensive structural changes, particularly in the financial domain, and persistent dedication to these reforms are the primary reasons for the upgrade of the credit rating from stable to positive, according to Moody’s.
“This achievement is a well-deserved recognition of the deep structural reforms implemented by the Jordanian government to shield the middle class from global and regional shocks,” said Finance Minister Dr. Mohammad Al Ississ, as reported by Roya, adding that it “also reflects international acknowledgment of the wise agenda of deep reforms initiated by His Majesty the King, which enhanced Jordan’s resilience and boosted growth rates.”
Moody’s highlighted the “stability” of public finance indicators for the upcoming years, estimating that the budget shortfall of the government will be in between 1.5 and 2 percent of GDP in 2024–2025 as opposed to 2.1 and 2 percent in 2023 and 2022.
It is also anticipated that by 2028, the government’s debt, which comprises the total debt of the Social Security Investment Fund as well as the national government, municipalities, and the Collateralized Debt Obligation of the National Electric Power Company and Water Authority, will account for 80 percent of GDP, down from approximately 90 percent in 2023.
Adel Al Sharkas, Governor of the Central Bank of Jordan (CBJ) stated according to Jordan Times that “this upgrade in Jordan’s outlook reflects the CBJ’s success in maintaining monetary and financial stability; by maintaining the pegged exchange rate regime supported by the high level of international reserves, with full capital mobility and very low convertibility risks.”
Provided by SyndiGate Media Inc. (Syndigate.info).