Dozens injured as security forces clash with protesters in Beirut    EGAS cuts gas exports to Jordan to 140 scf/day    Al-Sisi, WB delegation discuss recent developments on GERD's negotiations    Al-Sisi heads to Berlin for Libya's peace talks    Nine arrested for smuggling foreign currencies: ACA    Iran to send flight recorders from downed jet to Ukraine    EgyptAir receives eighth A220-300 plane    Alexandria, Dekheila ports working normally despite medium rain    Apple reveals worldwide national security requests for customer data    Egypt's tycoon Nassef Sawiris is Africa's second richest person    Europe stocks in green as China's GDP grows as expected; Stoxx 600 hit records high    Live score: Brighton & Hove Albion v Aston Villa (English Premier League)    Inter Milan sign wing-back Ashley Young from United    Bale, Ramos ruled out for Real Madrid's clash against Sevilla, Benzema returns    Floods, road closures in Australia as storms lash some bushfire-hit regions    Egypt's expected to see 5.8% 2020 GDP growth: UN report    Al-Hariri condemns Al Hamra attacks, amid protesters smashing central bank    France, US request to join East Mediterranean Gas Forum    Egypt's interior ministry says Mostafa Kassem received fair trial, was convicted terrorist    Art Alert: Bibliotheca Alexandrina to screen Oscar Shorts and star-studded films from Arab world    Screenwriter and producer Mohamed Hefzy's 'Ras El-Sana' to hit Egyptian cinemas in February    Egyptian actress Magda Al-Sabahi dies at 89    China, U.S. sign initial trade pact but doubts and tariffs linger    Egypt is best tourism destination for 2020 according to BBC    Egypt will not allow Anadolu's continuous ‘support of terrorism': senior official    Washington meeting on GERD continues for third day    Government launches Upper Egypt's first cultural festival    GERD filling will consider Blue Nile hydrological conditions, potential impact on downstream reservoirs: Egypt, Ethiopia, Sudan, US and WB    Egypt names executive head of comprehensive health insurance authority – ministry    New study finds Ocean acidification does not affect behaviour of coral reef fish    Nancy Ajram's husband charged with ‘intentional' murder    6th of October Rotary club trains undergrads for teaching literacy workshops    BBC names Egypt as best tourism destination for 2020    Brain freeze: Russian firm offers path to immortality for a fee    WHO says new China coronavirus could spread, warns hospitals worldwide    Mission Africa continues    Ethiopian Dam talks to continue in Washington on Wednesday : Ministry    Inconclusive GERD negotiations    Parliament approves three-month extension of state of emergency    Berlin Film Festival announces retrospective programme    NBE studies establishment of rowing club in Cairo    Egyptian sports in 2020: challenges and opportunities    Tough Mudder obstacle course race takes place for first time in Egypt    Egypt approves Uber's acquisition of Careem with set conditions    Egypt's Zamalek, Smouha presidents hit with disciplinary sanctions by EFA    Egypt's President Sisi pardons some prisoners on 25 Jan. Revolution anniversary    Egypt's Sami Anan released after near two-year detention    Liverpool's Mohamed Salah optimistic to see Egypt at 2022 World Cup    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





New IMF plan needed to reduce debt service costs: Jordan finance minister
Published in Amwal Al Ghad on 09 - 12 - 2019

Jordan hopes a new program with the IMF next year would secure lower servicing of $42 billion in public debt that has spiraled in the last decade as a result of a spillover of regional conflict on its economy, the country's finance minister said on Sunday.
Mohammad Al Ississ said talks with the International Monetary Fund over a new program to succeed a three-year extended fund facility (EFF) that ends in March would focus on efforts to spur sluggish growth that has hovered at around 2% in the last decade.
"We hope to reach with the IMF understandings that ensure accelerating the tempo of economic growth," Al Ississ told deputies during a speech in parliament ahead of approving the 9.8 billion dinars ($14 billion) draft 2020 budget.
"The interest on public debt comprises a big part of our current expenditure and its growth at an accelerating tempo is a real threat to our public finances."
Growth was expected to rise to 2.2% compared with a forecast 2% this year, in line with IMF projections, Al Ississ said.
The country's economic growth has been hit in the last few years by high unemployment and regional conflict weighing on investor sentiment, and as demand generated from Syrian refugees receded, according to the IMF.
Al Ississ blamed regional factors on the spike in public debt that shot up by almost a third in a decade to 30.1 billion dinars ($42.4 billion) in 2019, equivalent to 97 percent of GDP.
A new IMF deal would help the cash strapped country secure concessional grants and loans at preferential borrowing rates to ease annual debt servicing needed top reduce the debt to GDP ratio, Al Ississ said.
The IMF said in November at the end of a mission to conclude the final review of its program that public debt remained "very high" and that "international assistance" would be critical to allow "continued growth enhancing reforms."
The spiraling debt is at least in part due to successive governments adopting an expansionist fiscal policy characterized by job creation in the bloated public sector.
Past governments also hiked spending on welfare and public sector pay in a move to ensure stability in the aftermath of the "Arab Spring" protests in the region in 2011.
Jordan was committed to a gradual and steady reduction in a chronic fiscal deficit that is expected to reach 1.247 billion dinars next year, or 2.3% of gross domestic product compared with an estimated 3.1% this year, Al Ississ added.
Al Ississ said efforts to rein in public expenditure alongside a stimulus package for the private sector would boost revenues hurt by a slowdown in the economy and pervasive tax evasion.
source: Reuters


Clic here to read the story from its source.