Questions persist over Jordan’s economic recovery plan

Questions persist over Jordan’s economic recovery plan

 AMMAN - Confusion and uncertainty have marked the Jordanian government's handling of the country's deteriorating economic state, especially after the outbreak of the coronavirus pandemic that has not yet been contained.

After months of promoting self-reliance as the country's debt exceeded the ceiling of $43 billion, the government of Omar al-Razzaz is now setting its sights on foreign support in the form of loans and bonds, which could deepen the kingdom's economic crisis in the medium term instead of resolving it.

Economists say that the government's talk about the need for self-reliance was unrealistic in light of its poor resources and mounting setbacks, which have affected productive sectors as a result of the coronavirus outbreak.

In a bid to increase liquidity, Razzaz's government recently issued eurobonds worth $ 1.75 billion to pay off debts owed internally.

The finance ministry said the issuance of $500 million in bonds at 4.95% over a 5-year maturity and $1.25 billion in bonds at 5.85% over a 10-year maturity was oversubscribed by more than 6.25 times after attracting bids worth over $6.25 billion.

By issuing these bonds to borrow from global markets, Jordan hopes to inject liquidity into the private sector by paying the arrears of the government over the past