Jordan’s IMF agreement signals economic resilience amid regional challenges — Finance Minister

AMMAN — The Finance Minister Mohamad Al-Ississ, said that the new established programme with the International Monetary Fund (IMF) is an “insurance policy” to preserve the fiscal and monetary stability. 

He said that the agreement with IMF was reached despite regional disturbances that affected the Kingdom which is considered a main pillar of the fiscal and monetary policies, the Jordan News Agency, Petra, reported.  

In a meeting with the press at the Ministry of Finance on Thursday, Al-Ississ said that the value of the programme is US1.2 billion, spanning a duration of four years and will be included in an eighth review. 

The programme value represents 270 per cent of Jordan’s Special Drawing Rights (SDRs) he added.  Al-Ississ also confirmed that a margin of the SDR’s will remain available to address any future developments. 

Al-Ississ said that the programme will create opportunities for borrowing at low interest rates from international financing markets. The programme is a certificate by the IMF and international finance institutions to the resilience and stability of the Jordanian economy. 

Al-Ississ noted that Jordan’s Economic Modernisation Vision, which is commended by the IMF, is a key part of the programme and that structural reforms mentioned in the programme are locally designed and based on that vision. 

Al-Ississ said that Jordan successfully met the seventh review requirements, despite the regional circumstances, and started a new programme; neighbouring countries were not able to conclude any IMF’s review. 

Reaching an agreement at this stage is a clear indicator that Jordan’s economy is strong and resilient, successfully passing all IMF’s past seven reviews without the need to increase any taxes or fees.