IMF Approves $1.2 Billion Loan Program for Jordan’s Economic Reforms

The International Monetary Fund (IMF) announced on Wednesday that its executive board has approved a new loan program worth $1.2 billion over a period of four years to support economic reforms in Jordan, replacing a previous program that expires in March 2024.

The fund clarified that the decision allows Jordan the possibility of immediately obtaining an initial batch of around 190 million dollars, with the remaining amount being distributed in stages throughout the program subject to reviews.

The fund reached an expert-level agreement with Jordan regarding a new reform program on November 9th, which was described by Finance Minister Mohammad Al-Assaf as sending a message of confidence to investors.

The IMF stated that the new program will build upon Jordan’s strong performance under the previous program to support the country’s efforts in maintaining overall stability and enhancing resilience, while accelerating structural reforms.

He indicated that the funds will enable Jordan to continue the gradual stabilization of public finances, while protecting social and capital spending and enhancing the financial sustainability of the electricity sector and maintaining the exchange rate.

Kenji Okamura, Deputy Director General of the International Monetary Fund, said:

“The Jordanian government has successfully overcome a series of shocks in the past few years, and has maintained overall stability and moderate economic growth through skillful policy-making and significant international support.”

The International Monetary Fund pointed out that Jordan needs to make further progress in improving the business environment and attracting private investments in order to enhance a growth that is rich in job opportunities.

Okamura said in this regard :

“enhancing competition and continuing to reduce bureaucracy, as well as moving forward with labor market reforms to increase flexibility and reduce youth unemployment, and enhancing women’s participation in the workforce, are extremely important matters.”

The fund emphasized that donor support remains essential in helping Jordan overcome the challenging external environment, hosting a large number of refugees, and maintaining momentum for reform.

(Reuters)