Jordan’s finances will receive a major boost with the World Bank’s approval on 4 June of a $1.45bn financing package to pump money into the cash-strapped country. The loan will be disbursed in two tranches, and contains guarantees of $250mn by the UK and $200mn by Saudi Arabia. Total World Bank commitments to Jordan will rise to $2.78billion.
Whilst the loan will help fund Jordan’s bloated public sector spending, it also sees the kingdom take on yet more debt – hardly ideal with the low growth country approaching a 100% debt-to-GDP ratio (MEES, 1 February). Foreign financing is key to filling Amman’s coffers; tax revenues only made up 56% of total revenues in 2018. (CONTINUED - 112 WORDS)