IMF helps Jordan pursue reforms, combat COVID-19 with $1.3bn

The Executive Board of the International Monetary Fund (IMF) approved a 48-month over $1 billion arrangement under the Extended Fund Facility (EFF) with Jordan to support the country’s economic and financial reform program. The arrangement entitles Jordan to special drawing rights (SDR) amounting to 926.37 million (about $1.3 billion) or 270 percent of Jordan’s quota.

It also provides for spending to contain the outbreak of the novel coronavirus (COVID-19), according to a statement released by the IMF late Wednesday.

This program is anchored by critical structural reforms designed to lower electricity costs for businesses and create incentives for them to hire more young people. The aim is to support stronger and more inclusive growth, create jobs, especially for women and young people, and reduce poverty, the statement pointed out.

Improving the fiscal situation is also needed to stabilize and bring public debt towards more sustainable levels.

Continued support from donors, particularly through concessional loans and budget

grants, will be critical to program success and help Jordan cope with humanitarian and economic needs, it went on. Although the program was designed before the COVID-19 outbreak, changes were made to the program to support unbudgeted spending covering emergency outlays and medical supplies and equipment.

If the impact of the outbreak is deep enough to put at risk program objectives, the program will be adapted further to the changed circumstances, upon reaching understandings with the authorities. (KUNA)