Prime Minister Bisher Khasawneh has said that Jordan’s debt-to-GDP ratio is currently around 90 percent, emphasizing that his government is committed to structural reform and is pursuing a prudent approach to debt management and reduction.
The Prime Minister told reporters on the sidelines of the Arab SMEs Summit, which opened Sunday in Amman under the theme “Opportunities Beyond Borders,” that the Kingdom’s debt service dropped by JD25 million in 2021, adding, “We have not seen this downward trajectory in many years. We are taking firm steps in this direction”.
Khasawneh, who opened the event on behalf of Crown Prince Al-Hussein bin Abdullah, stated that Jordan’s foreign exchange reserves have reached a new high of around $17 billion, and that international rating agencies have either maintained or raised Jordan’s credit ratings.
The Prime Minister also indicated that the Kingdom’s wheat and barley reserves are sufficient for 13 and 8 months, respectively, and that his government is pursuing prudent policies to strengthen the Kingdom’s resilience in the face of global market challenges.
In response to a question about a recent reshuffle of his cabinet, Khasawneh said it aimed primarily to ramp up efforts toward achieving economic and political reforms as well as public sector reform.
Arab ministers, representatives from various business sectors and more than 100 SMEs are attending the summit, which is being organized by the United Nations Economic and Social Commission for Western Asia (ESCWA) in collaboration with the Jordan Enterprise Development Corporation (JEDCO).
The event, which is the first of its kind in the region, will discuss mechanisms for assisting Arab small and medium-sized businesses in accessing regional and international markets, securing financing, and increasing their capacity for expansion.
Minister of Industry, Trade, and Supply Youssef Shamali stated that access to financing is a challenge for SMEs in the Arab world, noting that the proportion of banking facilities provided for these projects does not exceed 9 percent of the total banking facilities.
In addition, he cited the absence of robust regulatory frameworks required to streamline the SME sector as a further obstacle.
To address these challenges, the minister added, Jordan launched a national strategy for financial inclusion, with one of its main goals being to improve access to finance for small and medium-sized businesses, citing the Kingdom’s success in increasing financial inclusion from 33 percent in 2017 to 50 percent in 2020.
For her part, the UN Under-Secretary and Executive Secretary of ESCWA, Rola Dashti, indicated that the summit serves as a platform that brings together those looking for funding, training and technology, and those who have the capacity and resources to meet these needs.
She also stated that SMEs’ annual employment rates remain low when compared to large corporations, emphasizing that SMEs can play a critical role in achieving higher and more comprehensive economic growth, particularly in securing new job opportunities for young people, serving as an effective driver of change and development.
The three-day summit will cover topics such as global expansion, market access and global value chains, access to finance, green entrepreneurship, and emerging trends in technology. It also features an exhibition in which approximately 100 small and medium-sized businesses are taking part.
Source: Jordan News Agency