São Paulo – The International Monetary Fund (IMF) is making USD 71 million available to Jordan, as part of a three-year loan amounting to USD 723 million. The loan was agreed upon in August 2016, and the new instalment brings the total amount provided so far to USD 141.9 million.
The loan is intended to support Jordan’s economic-financial reform program, whose goal is to advance “fiscal consolidation to gradually lower public debt and broad structural reforms to enhance the conditions for more social-friendly inclusive growth,” according to the IMF.
“The Jordanian economy has performed favorably under a difficult external environment. Macroeconomic stability and external viability have been maintained thanks to a prudent monetary policy and progress in reducing the fiscal deficit,” a press release quoted IMF Deputy Managing Director and Acting Chair Mitsuhiro Furusawa as saying.
“However, with below-potential economic growth, high unemployment, and difficult social conditions, steadfast implementation of reforms is critical to preserve these achievements and enhance inclusive growth,” Furusawa went on.
He also said access to credit should be made easier, and that the business environment needs improving. According to Furusawa, these are measures that could support investment and productivity in the country. “Further reforms to reduce the cost of formal jobs are critical to address high unemployment, particularly for young people and women,” he asserted.
Furusawa also called for support to the steady stream of Syrian refugees Jordan has bene welcoming. “Continued donor support through sufficient budget grants and concessional financing will be important to help Jordan cope with the refugee crisis and support the authorities’ program goals,” he said.
*Translated by Gabriel Pomerancblum