Finance

US senior official in Jordan to discuss bilateral issues

December 9, 2024, 4:41 PM

John Bass, US undersecretary of state, will visit Jordan this week to discuss funding and stability

John Bass to thank officials
Discussions on reform and stability
Cash transfer of $845m this week

US undersecretary of state John Bass will arrive in Jordan on Monday to discuss a range of bilateral issues and this week’s $845 million cash transfer to support the Arab state.

During meetings with senior Jordanian government officials Bass will also discuss efforts to de-escalate regional conflicts, the US Department of State said in a statement, and thank Jordan for its “continued leadership in providing lifesaving aid to Palestinian civilians in Gaza through the Jordan Corridor”.

On Syria, it said Bass will discuss the importance of protecting civilians and members of minority groups and the need for a Syrian-led political solution, in line with UN Security Council Resolution 2254.

The US signed a seven-year agreement in December last year to provide $10.15 billion to support Jordan’s economy.

The agreement was part of the US’ economic assistance programme to assist in financial and development planning.

The cash support grant, which goes directly to Jordan’s public treasury account, is aimed at supporting initiatives in public finance, water, energy, education, health, public works, housing, local development, tourism, antiquities and youth programmes.

In September, Jordan’s King Abdullah swore in a new government tasked with fast-tracking International Monetary Fund-backed reforms and pushing through political and economic modernisation crucial to reversing a decade of sluggish growth.

The IMF in January agreed with Jordan on a new $1.2 billion four-year reform programme to help cushion the economy from the adverse impact of regional conflict.

Jordan had met most of the fiscal and monetary targets in a previous IMF programme that began in March 2020, closing tax loopholes, widening the tax base and maintaining $18 billion of adequate foreign currency reserves, the IMF said.

In October, the IMF granted Jordan access to $131 million as part of the programme, saying recent upgrades to its credit ratings, the first in over 20 years, underscore the credibility of the authorities’ economic policies.

However, as regional conflicts persist and widen, the impact on Jordan’s economy has been more severe than initially expected at the beginning of the reform programme.

Jordan’s economic growth is expected to moderate to 2.3 percent this year due to the indirect impacts of the increase in regional tensions, which have hit investment and tourism.

However the growth is expected to rebound toward 3 percent by 2026-27.

Rating agency S&P in September upgraded Jordan’s long-term foreign and local currency sovereign credit ratings to BB-from B+, with a stable outlook.