IMF endorses second review of Jordan’s economy

AMMAN — The International Monetary Fund’s (IMF) executive committee has endorsed the second review of Jordan’s economic reform programme, which is currently being implemented, Finance Minister Ezzeddine Kanakrieh said on Monday. 

Kanakrieh said the IMF’s endorsement of the programme is a “strong indicator of the national economy’s monetary and financial stability”. 

The minister added that the endorsement of the second review will allow the Kingdom to receive the anticipated facilitated loans and funding which depended on the IMF’s approval of the revision. 

The endorsement will also enhance confidence in Jordan’s investment environment, Kanakrieh pointed out. 

Earlier this year, an IMF mission visited the Kingdom to conduct the second review of the national economy’s performance under the Extended Fund Facility (EFF) and, after its completion of the review, it issued a statement concluding that its outlook “brings renewed momentum despite persistent challenges”. 

The endorsement of the second review will contribute immensely to improving Jordan’s international credit rating, the minister stressed. 

The minister added that the positive outcomes of the second review were due to the Kingdom’s “great efforts” exerted towards economic reform in various arenas, which have reflected positively on the level of international support.

Jordan and the IMF signed a $700-million, 36-month EFF programme in 2016, under which the two sides agreed on six conditions that aim at reducing public debt to safe levels and stimulating the economy. 

The Income Tax Law, which went into effect at the beginning of this year, is part of fiscal reforms under the programme, as well as other measures to increase public revenues and attract investments.

Rigorous discussions and negotiations were held in Amman and Washington with the global lending institution, earlier this year, to complete the second review and to showcase financial procedures adopted by the Kingdom to mitigate the levels of budget deficit and public debt.