jordan pulse -

The Association of Banks in Jordan (ABJ) lauded Moody's Rating's affirmation of the Kingdom's sovereign credit rating at Ba3 with a stable outlook, despite regional instability.

"This decision is a reflection of the strength of the Kingdom's economic and financial foundations, and its ability to maintain stability in a complex regional environment," it said.

The credit rating is a significant indicator of international confidence in the Jordanian economy, and it reflects the effectiveness of economic and monetary policies, the efficiency of national institutions in managing fiscal and monetary balances, and the continued progress in implementing economic and financial reform programs, it said.

The ABJ pointed out that the agency's report highlighted positive factors, most notably Jordan's effective economic and financial institutions, the government's commitment to fiscal discipline, efforts to enhance spending efficiency, and investment incentives, in addition to ongoing support Jordan receives from its international partners, particularly the International Monetary Fund, the European Union, and the United States.

The agency also pointed to the report's projections for improved economic performance in the coming years, with the national economy expected to achieve growth rates of up to 2.7 percent in 2026, potentially rising to around 3 percent in the medium term, driven by accelerated investment and enhanced economic activity, said the ABJ.

It emphasized the importance of projections indicating a gradual decline in the public debt-to-GDP ratio, reflecting the effectiveness of fiscal policies and the government's ongoing efforts to achieve fiscal sustainability.

The association also stressed that maintaining monetary policy stability, especially pegging the dinar to the US dollar, is a cornerstone of strengthening confidence in the national economy and preserving monetary and financial stability, supported by comfortable levels of foreign reserves.

The timing of the announcement, coinciding with progress in cooperation programs with the International Monetary Fund (IMF), including reaching a staff-level agreement for the fifth review of the Extended Fund Facility (EFF) program and the second review of the Resilience and Sustainability Facility (RSF) program, reinforces the credibility of the economic reforms implemented by the Kingdom, and underscores its steady progress on the path of reform and stability, the association noted.

It stressed that the banking sector is a key pillar in supporting economic and financial stability, which is reflected in the Kingdom's stable credit rating. The banking system enjoys high levels of strength, solvency, and liquidity, along with a strict commitment to applying best supervisory and risk management practices in accordance with the directives of the Central Bank of Jordan.

It said the banking sector continues its vital role in financing various economic activities, supporting productive and service sectors, and promoting financial inclusion, thereby contributing to stimulating growth and creating job opportunities.

This balanced performance is evidence of the Jordanian banks' ability to adapt to regional and local challenges, continue to support monetary and financial stability, and enhance investor confidence in the national economy, said the ABJ.

//Petra//SS