The Executive Board of the International Monetary Fund (IMF) has approved a new loan program worth $1.2 billion for Jordan, spanning four years to support economic reforms.
This program replaces a previous one that was set to expire in March 2024.
In a statement released on Wednesday, the IMF explained that the decision allows Jordan to immediately receive an initial disbursement of about $190 million, with the remaining amount distributed in stages throughout the program, subject to reviews.
The IMF reached an agreement at the expert level with Jordan regarding the new reform program on November 9, a move that Jordan's Finance Minister, Mohammad Al-Asass, described as a message of confidence to investors.
The approval of the "Extended Fund Facility" comes amid growing concerns that the Gaza conflict could escalate into a wider regional conflict.
The IMF stated that the new program will build on "Jordan's strong performance under the previous program" to support the country's efforts to maintain overall stability, enhance resilience, and accelerate structural reforms.
It noted that the funds will enable Jordan to continue the gradual fiscal consolidation while safeguarding social and capital spending, improving the financial sustainability of the electricity sector, and maintaining the exchange rate peg.
The IMF highlighted that Jordan needs to make further progress in improving the business environment, attracting private investment to promote job-rich growth.
The IMF also emphasized that donor support remains essential to help Jordan navigate "the challenging external environment, host a large number of refugees, and maintain reform momentum."
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