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Jordan to tap Islamic or Eurobonds debt market

26 June 2010

Jordan officials and bankers have said the kingdom wants to speed up issuance of Islamic bonds or Eurobonds to tap more competitive sources of funding to contain its budget deficit, Reuters has reported. "Domestic borrowing costs have gone up sharply and this only piles pressure on the treasury ... that is why the government is moving ahead with more innovative means to tap lower-cost funding abroad," one senior banker who requested anonymity told the news service. Last year the authorities considered the international debt market to finance a chronic deficit worsened by the global downturn. However, it put the plans on hold as risk-averse local banks, awash with liquidity, were happy to lend to the government even at low interest rates.

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