An International Monetary Fund (IMF) mission has begun discussions in Amman on Sunday for the fourth review of Jordan’s program under the Extended Fund Facility (EFF) agreement. This follows the completion of the third review consultations by the IMF Executive Board at the end of June.
اضافة اعلان
The IMF team will hold discussions starting Sunday with the Ministries of Finance, Water, Labor, Industry and Trade, among others, as well as senior government officials and the Central Bank of Jordan. The mission is expected to conclude its discussions within two weeks, according to a source.
If the fourth review is successfully completed, it will unlock a new tranche of 97.784 million Special Drawing Rights (SDRs), approximately $134 million.
On June 25, the IMF Executive Board completed the third review of Jordan’s program, allowing the government to access immediate funding of roughly $134 million to support its national economic program.
This progress is part of a four-year agreement approved in January 2024, totaling about $1.3 billion (equivalent to 270% of Jordan’s quota in the IMF). With this disbursement, Jordan has received a total of $595 million under the program by the end of June.
Additionally, the Board approved a new financing program with Jordan under the Resilience and Sustainability Facility (RSF), granting access to about 514.65 million SDRs, or approximately $700 million, equivalent to 150% of Jordan’s IMF quota. This 30-month program aims to support Jordan in addressing long-term challenges, particularly in water and electricity sectors, and to strengthen preparedness for future health emergencies, including pandemics.
The agreed reforms focus on four main areas: enhancing fiscal sustainability and energy efficiency in the energy sector, improving financial sustainability and resource management in the water sector, strengthening the resilience of the financial and public sectors, and enhancing pandemic preparedness.
The IMF noted that Jordan’s program is progressing steadily, reflecting the authorities’ commitment to coherent macroeconomic policies and structural reforms aimed at boosting resilience, accelerating growth, and creating jobs.
Jordan’s economy recorded stronger-than-expected growth of 2.5% in 2024 and is expected to improve gradually in the coming years, supported by sound policies and ongoing reforms. Inflation remains low and stable, while central bank reserves exceeded $20 billion by the end of 2024, with a stable current account and an expected deficit of around 6% of GDP.
The IMF also highlighted the government’s efforts to gradually control public spending, reduce public debt, and create room for increased social and investment expenditure. It praised reforms in the business environment and labor market, particularly in expanding opportunities for women and youth.
