Gov’t reaches staff-level agreement on $1.2 billion financial, monetary reform programme

AMMAN — The government has reached a staff-level agreement with the International Monetary Fund (IMF) on a new four-year financial and monetary reform programme amounting to US1.2 billion after successfully meeting the seventh review requirements.

The negotiations started in July upon the visit of Jordanian delegation to Washington DC, the Jordan News Agency, Petra, reported. 

Finance Minister Mohamad Al-Ississ stated that the programme was prepared by specialised ministries and institutions, indicating that itwill assist the Kingdom in maintaining financial stability and enhancing economic growth by increasing the competitiveness of the national economy and supporting exports with the aim of creating jobs to reduce unemployment rates, in addition to expanding social protection.

Ississ affirmed the government’s commitment to continue combating tax evasion and tax avoidance, which promotes tax fairness and increases general revenues for the treasury without imposing any new tax burdens on citizens. He emphasised that the programme does not entail raising any taxes or introducing new tax levies.

Governor of the Central Bank of Jordan Adel Sharkas confirmed the Central Bank's commitment to the Extended Fund Facility (EFF) to maintain financial inclusion in the Kingdom and facilitate access to finance for small and medium business. 

The Central Bank will continue to apply best international practices in the insurance sector, raise awareness of the anti-money laundering and counter-terrorism financing regulations to prevent Jordan from being placed on the FATF’s grey list and develop digital payment systems in the Kingdom, Sharkas added. 

In a statement, the IMF said that "Jordan has maintained macroeconomic stability and access to international capital markets through prudent monetary and fiscal policies".

The statement commended Jordan ability to access financial markets while promoting social protection networks and that major progress has been achieved in implementing structural reforms to boost overall economic growth.