Jordan received the proceeds billion Eurobonds
Arabs Today / Ibrahim Khreisat 2014
Jordan received the proceeds of the issuance of Eurobonds amounting to billion dinars have been deposited in the Ministry of Finance account at the Central Bank of Jordan.
Jordan was raised in New York Eurobonds guaranteed by the US government a week ago, one billion dollars for five years and an interest rate of 1.945%.
Thus, the Central Bank of Jordan reserves rose at the end of the month of May to a record $ 14.3 billion, up from $ 13.3 billion recorded for the balance of the central reserves of hard currency the highest number on record.
Government of external financing and headed for low interest rates and to strengthen precautions balance of foreign and reduce currency costs of the government's debt service, which approached 21 billion dinars in addition to make room for the private sector «individuals and companies» to take advantage of the liquidity available for lending held by local banks.
The central bank cut interest rates on instruments of monetary policy rates by 125 basis points in less than a year, the latest decision, which was issued a week ago, by lowering the 50 basis points interest rates.
And it contributed to the decisions of the central bank to reduce interest rates on instruments of monetary policy, which is reflected in the low interest rates on government bonds.
And a reflection of lower interest rates on the monetary policy instruments as the month of August of 2013, the government's debt servicing costs decreased by 70 million dinars in 2013 is expected to decline in debt service in 2014 by 100 million dinars.
The government issued in 2013, local and international treasury dinar bonds and the dollar value of 6.6 billion dinars for the purpose of extinguishing the debt owed and the payment of premiums and benefits of debt as well as finance the budget deficit and extinguish the bonds matured on some independent institutions and government companies, notably «electricity and water», recorded government bonds for the purpose of extinguishing value debt and finance the deficit 4.9 billion dinars, of which 600 million for the National Electricity Company and the power of water, at the time amounted to the value of bonds in dollars raised by the government in the domestic market of $ 1.150 billion on the first two installments of $ 500 million and the second $ 650 million.