Finance

IMF approves $1.2bn loan to support Jordan’s reforms

By Pramod Kumar

January 11, 2024, 4:45 AM

IMF Jordan loan Petra The Treasury — Petra's most elaborate ruin, Al Khazneh (the Treasury): Jordan is getting a loan from the IM to help it pay for reforms

The International Monetary Fund (IMF) has approved a $1.2 billion, four-year loan programme to support Jordan’s economic and financial reforms.

The new arrangement replaces the previous extended fund facility arrangement, which was approved in March 2020 and was set to expire in March 2024.

Jordan will get immediate access to about $190 million of the loan, with the remaining amount to be phased over the programme, subject to reviews, the IMF said.

The IMF concluded a staff-level agreement with Jordan on November 9.

“Jordan has weathered well a series of shocks over the past few years, maintaining macro-stability and moderate economic growth thanks to adept policy making and sizable international support,” said Kenji Okamura, the IMF’s deputy managing director and acting chair.

Prudent fiscal and monetary policies have reduced deficits, strengthened reserve buffers, preserved financial stability, and maintained market confidence in a challenging global and regional environment, Okamura said.

“Donor support remains essential to help Jordan navigate the challenging external environment, host a large number of refugees, and maintain the reform momentum,” he said.