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26 March 2020
ECONOMY

IMF approves $1.3 billion extended fund facility for Jordan

The IMF expects GDP growth to reach 2.1 per cent in 2020 and will increase gradually in the coming years, reaching 3.3 per cent over the medium term and reinforced by the programme’s structural-reform timetable

Jordan’s macroeconomic and structural reform programme aims to enhance the conditions for more inclusive economic growth/Bloomberg

by Kudakwashe Muzoriwa

Jordan’s Minister of Finance said that the International Monetary Fund (IMF) has approved a four-year $1.3 billion programme.

Mohammad Al Ississ, the Minister of Finance, said that the IMF executive board’s decision to sign off on the extended fund facility programme at a time global uncertainty is mounting in the face of the coronavirus pandemic signals the fund’s confidence in Jordan’s economic reforms.

 Al Ississ said that the decision shows support for the Kingdom’s efforts to mitigate the impact of COVID-19 on people and vulnerable sectors of the economy.

“The recent measures taken by the government to protect the physical and economic health of our citizens in light of the coronavirus not only fit within the programme’s framework but are well aligned with it,” said Al-Ississ.

The Hashemite Kingdom reached a staff-level agreement on a four-year programme based on growth-supporting structural reforms and fiscal discipline in January 2020 after months of talks with the IMF.

“We will continue to work with the fund, in partnership with the Jordanian private sector, to mitigate the inevitable economic impact of the coronavirus on Jordanian businesses and citizens,” added Al-Ississ.

The IMF said that the agreed economic programme, to be supported by an arrangement under the Extended Fund Facility (EFF) will reinforce the ambitious’ macroeconomic and structural reform agenda underpinned by the Kingdom’s five-year reform framework, which attracted significant support from the international community at the London Initiative in 2019.

Jordan’s macroeconomic and structural reform programme aims to enhance the conditions for more inclusive economic growth, particularly in light of the challenges posed by ongoing regional conflict and uncertainty. 

Additionally, the programme is centred on a pro-growth reform agenda—which is based on measures to improve tax administration and reduce tax evasion, as well as more effective public-sector investment, reduced business costs, and measures to improve government transparency and the investment climate. 


RELATED STORIES: Jordan COVID-19 IMF

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