IMF approves $1.2 billion extended arrangement under Extended Fund Facility for Jordan

AMMAN — The Executive Board of the International Monetary Fund (IMF) approved the new Extended Fund Facility (EFF) programme for Jordan, agreed upon by experts last November, with a value of approximately US1.2 billion until 2028.

Finance Minister Mohamad Al-Ississ said that the programme was prepared by specialised ministries and institutions, indicating that it will assist the Kingdom in maintaining financial stability and enhancing economic growth by increasing the competitiveness of the national economy and supporting exports with the aim of creating jobs to reduce unemployment rates, in addition to expanding social protection.

Al-Ississ affirmed the government’s commitment to continue combating tax evasion and tax avoidance, which promotes tax fairness and increases general revenues for the Treasury without imposing any new tax burdens on citizens. He also stressed that the programme does not entail raising any taxes or introducing new tax levies.

Governor of the Central Bank of Jordan Adel Sharkas emphasised that the new EFF programme will contribute to continuing the economic reform path, enhancing the resilience of the national economy, and maintaining monetary and banking stability. This includes upholding the fixed exchange rate policy of the Jordanian Dinar against the US Dollar, supported by high levels of foreign reserves, controlling moderate inflation rates, and preserving the stability of the banking system.

The Central Bank will continue to apply best international practices in the insurance sector, raise awareness of the anti-money laundering and counter-terrorism financing regulations, Sharkas added. 

The programme, according to the IMF statement, supports Jordan's financial and monetary reform programme. The economic ministerial team conducted direct negotiations with the IMF, resulting in a package of structural reforms aligning with the Economic Modernisation Vision that will be included in the new EFF programme.

In a statement, the IMF said that the new EFF agreement will support Jordan's efforts to maintain overall stability, strengthen resilience, and accelerate the implementation of structural reforms for stronger and more inclusive growth to provide employment opportunities.

 The current programme builds upon Jordan's 2020 programme with the Fund, which underwent six reviews and successfully met the seventh review requirements before moving to the new one. 

The 2020 programme contributed to enabling the national economy to face the regional and global challenges that affected the Kingdom during the past four years, reflecting in the financial and monetary stability of Jordan, and avoiding the inflationary pressures to which the economies of other countries were exposed.