IMF Approves $834m Economic Resilience Package for Jordan
Jordan's economy to receive financial support from IMF to boost resilience and sustainability
The International Monetary Fund (IMF) has approved an $834 million economic resilience package for Jordan, including a $700 million loan and a $134 million disbursement from a previously agreed fund.
This approval by the IMF's executive board marks the completion of the third review of Jordan’s Extended Fund Facility (EFF), enabling an immediate distribution of $134 million.
In total, under the four-year, $1.3 billion program approved in January 2024, disbursements have reached $595 million so far.
The new 30-month Resilience and Sustainability Facility arrangement aims to provide Jordan with financial support amounting to $700 million.
This fund will be utilized to address structural challenges within the water and electricity sectors as well as enhance preparedness for public health emergencies, including future pandemics.
The IMF and World Bank have been increasingly supportive of Jordan's efforts to stabilize its economy through a series of reforms aimed at improving financial stability, boosting private investment, and creating jobs.
Jordan has been facing economic pressures due to regional instability, the ongoing war in Gaza, and prolonged refugee crises from neighboring countries.
These challenges have put a strain on public finances, increased unemployment rates, and disrupted trade and tourism sectors vital to the Jordanian economy.
Despite these difficulties, Jordan's economy has shown steady growth, reaching 2.5 percent in 2024.
The IMF emphasizes the importance of continued reforms by Jordan to bolster economic resilience and sustainability.
The organization applauds Jordan for maintaining strong foreign reserves over $20 billion and a stable exchange rate peg.
Additionally, it calls for improvements in public utilities' efficiency and fiscal sustainability to ensure better service delivery.
Jordan's banking sector is considered robust with the central bank taking steps to enhance risk analysis, oversight, and crisis response capabilities.
The IMF has also stressed the need for revenue enhancement, expenditure streamlining, and contingency measures to reduce public debt while safeguarding key social and capital expenditures.
These strategies are aimed at achieving fiscal sustainability under Jordan's Economic Modernization Vision.
This approval by the IMF's executive board marks the completion of the third review of Jordan’s Extended Fund Facility (EFF), enabling an immediate distribution of $134 million.
In total, under the four-year, $1.3 billion program approved in January 2024, disbursements have reached $595 million so far.
The new 30-month Resilience and Sustainability Facility arrangement aims to provide Jordan with financial support amounting to $700 million.
This fund will be utilized to address structural challenges within the water and electricity sectors as well as enhance preparedness for public health emergencies, including future pandemics.
The IMF and World Bank have been increasingly supportive of Jordan's efforts to stabilize its economy through a series of reforms aimed at improving financial stability, boosting private investment, and creating jobs.
Jordan has been facing economic pressures due to regional instability, the ongoing war in Gaza, and prolonged refugee crises from neighboring countries.
These challenges have put a strain on public finances, increased unemployment rates, and disrupted trade and tourism sectors vital to the Jordanian economy.
Despite these difficulties, Jordan's economy has shown steady growth, reaching 2.5 percent in 2024.
The IMF emphasizes the importance of continued reforms by Jordan to bolster economic resilience and sustainability.
The organization applauds Jordan for maintaining strong foreign reserves over $20 billion and a stable exchange rate peg.
Additionally, it calls for improvements in public utilities' efficiency and fiscal sustainability to ensure better service delivery.
Jordan's banking sector is considered robust with the central bank taking steps to enhance risk analysis, oversight, and crisis response capabilities.
The IMF has also stressed the need for revenue enhancement, expenditure streamlining, and contingency measures to reduce public debt while safeguarding key social and capital expenditures.
These strategies are aimed at achieving fiscal sustainability under Jordan's Economic Modernization Vision.
