First installment of $139m under EFF programme transferred to Treasury account

AMMAN — Minister of Finance Mohamad Al-Ississ on Tuesday said that the first installment of the "Extended Fund Facility" programme (EFF), which was agreed upon with the International Monetary Fund (IMF), has been transferred to the Treasury account in the Central Bank of Jordan (CBJ).

The installment, at a value of $139 million, comes within a four-year programme that has a total value of about $1.3 billion, the Jordan News Agency, Petra, reported.

Al-Ississ confirmed that making these transfers to the Treasury account, at a time when the Jordanian government is taking and reviewing a number of economic measures to confront the coronavirus pandemic, helps provide a portion of the liquidity needed to carry out these measures, especially in light of the economic decline in global markets.

The minister added that the fund transfer is “an indication of the international institutions’ confidence in the Jordanian economy and the prudence of the measures that are taken”.

It also reflects the strength and resilience of the Jordanian economy to face the economic challenges and repercussions created by the coronavirus crisis, as the Jordanian programme is considered the first programme to be approved under current conditions, Petra reported.

The minister noted that the programme will open the way for other sources to obtain liquidity in this emergency circumstance, citing the second instalment of the development policy loan provided by the Japanese government, at a value of $100 million, that has been recordedto the Treasury account in the CBJ.

The Jordanian government has announced a number of measures to ensure the health and safety of citizens that have had an economic impact, such as isolation and curfew measures, in addition to relief  measures related to social security, sales tax, customs and other measures that aim to support companies and employment.

Last Wednesday, the IMF’s executive board had approved the new four-year programme, agreed upon with Jordan, to support financial stability and promote economic growth.

The new programme is focused on increasing job opportunities, stimulating growth and financial stability, improving social spending and enhancing transparency.

It also focuses on improving the business environment by reducing the cost of doing business, including the costs of social security and energy, which leads to job creation.

The programme, which is described as “distinctively Jordanian”, also aims to strengthen tools to combat tax and customs evasion, according to Petra.