IMF requires more economic efforts from Jordan

The Executive Board of the International Monetary Fund (IMF) has said that Jordan’s “monetary policy should remain supportive given the still-fragile economy” calling for more efforts “to preserve stability and promote financial inclusion.”

In a statement issued early this week, the IMF announced it had completed the first review of Jordan’s performance under the programme supported by the Extended Fund Facility (EFF), noting that Jordan’s four-year EFF of $1.3 billion, equivalent to 270 per cent of Jordan’s quota in the IMF, was approved by the IMF’s Board on 25 March.

The completion of the review will make $148 million immediately available, the IMF said, noting that this brings total IMF disbursements to Jordan in 2020 to $689 million, including $401 million under the Rapid Financing Instrument in May.

Deputy Managing Director and Acting Chair, Mitsuhiro Furusawa, said in the statement: “The financial system [of Jordan] is sound, but continued efforts will be needed to preserve its stability and promote financial inclusion.”

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He added: “Sustained efforts are needed to achieve durable, inclusive, and jobs-rich growth. Reforms should focus on improving the business climate, reduce unemployment, particularly among women and youth, enhancing competitiveness, and strengthening governance.”

Concerning COVID-19, Furusawa said: “While the COVID-19 outbreak continues to pose significant risks to program implementation, these are mitigated by the authorities’ strong commitment to the program. This, together with stepped up financial support from development partners, especially in the form of grants, will help Jordan achieve program objectives, build a stronger economy, and support refugees.”