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U.S. loan guarantees are boosting Jordan's bonds as investors bet the $1 billion in aid will help the Middle East nation pay rising costs for energy and relief to refugees from Syria.Jordan's economic growth, which had averaged 6.5 percent in the decade up to 2009, slowed to less than 3 percent for three consecutive years.The Central Bank of Jordan reduced key interest rates by 25 basis points on Jan. 19, the third such cut in 12 months, reducing the overnight repo rate to 4 percent and the rediscount rate to 4.25 percent.The premium investors demand to hold Jordan's dollar-denominated debt over U.S. Treasuries tumbled 42 basis points, or 0.42 of a percentage point, this month to 309 on Feb. 14, according to JPMorgan Chase & Co.'s EMBIG Jordan Sovereign Spread index.Aid from the U.S. and Gulf donor countries, together with a $2 billion loan from the IMF, helped Jordan increase its foreign currency reserves to $12 billion during the past year.
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