Jordan’s Public Debt: A Stable Structure?

Jordan’s public debt, while significant, exhibits a relatively stable structure, characterized by a short average maturity for domestic debt (4.3 years) and a longer maturity for external debt (8.3 years). This reflects responsible debt management and inspires confidence among international credit institutions. Approximately 86% of the total debt carries fixed interest rates, mitigating risks associated with fluctuating interest rates. The debt portfolio is diversified across different currencies, with the US dollar accounting for 72% of the external debt, providing a hedge against exchange rate volatility. Over half of the external debt comes from concessional sources, such as regional and international institutions and foreign governments, offering flexibility in future refinancing. This mix of debt types and sources indicates a prudent approach to managing the nation’s financial obligations.