IMF disburses $190 million to Jordan, part of $1.2 billion program

IMF building
(File photo: Jordan News)
AMMAN — The International Monetary Fund (IMF) has disbursed the first tranche of its new program with Jordan, totaling $190 million out of $1.2 billion, distributed over a four-year agreement period with the government. On January 16, the IMF transferred 144 million Special Drawing Rights (SDRs), equivalent to $190 million, with the remaining amount to be disbursed through stages subject to eight agreed-upon reviews. Last year, the IMF disbursed 24.017 million SDRs, equivalent to $31.815 million, while in 2022, it disbursed about 394.565 million SDRs, equivalent to $522.688 million.اضافة اعلان

The IMF Executive Board approved a new Extended Fund Facility (EFF) agreement last month with Jordan for four years, totaling $1.2 billion (equivalent to 926.37 million SDRs) to support the government's economic program. IMF Deputy Managing Director Kengo Okamura stated that Jordan has managed to withstand a series of shocks over the past few years, maintaining overall stability and moderate economic growth due to sound policies and significant international support, Al-Mamlaka TV reported.

The new arrangement aims to support the government's efforts to maintain overall stability, gradually adjust the public debt trajectory downward, protect social and capital spending, improve financial conditions, enhance electricity sector efficiency, and maintain an appropriate monetary policy framework. Additionally, it will support efforts to accelerate structural reforms for stronger growth and job creation, particularly by improving the business environment, accessing financing, enhancing labor market flexibility, and improving public administration.

The new arrangement builds on Jordan's strong performance under the previous arrangement, which completed six reviews on time and fulfilled all commitments for the seventh review. The new program replaces the previous one approved in March 2020, scheduled to end in March 2024, having completed six out of eight reviews and meeting obligations for the seventh review.

Finance Minister Mohammed Al-Assaf stated that the program is a strategic Jordanian choice prepared by specialized Jordanian ministries and institutions. It will help maintain financial stability, enhance economic growth by increasing the national economy's competitiveness, supporting exports to create jobs, alleviate unemployment, and expand social protection.

The government reaffirmed its commitment to continue combating tax evasion and avoidance, achieving tax justice, and increasing general treasury revenues without imposing any new tax burdens on citizens. Special Drawing Rights (SDRs) are not a currency but are valued based on a basket of five currencies: the US dollar, euro, Chinese yuan, Japanese yen, and British pound, currently estimated at $1.324720 per SDR unit.

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