Washington, March 26 (Petra) -- The Executive Board of the International Monetary Fund (IMF) today approved a 48-month arrangement under the Extended Fund Facility (EFF) with Jordan for an amount equivalent to SDR 926.37 million (about US$ 1.3 billion or 270 percent of Jordan’s quota) to support the country’s economic and financial reform program. It also provides for spending to contain and treat COVID-19.
This program is anchored by critical structural reforms designed to lower electricity costs for businesses and create incentives for them to hire more young people. The aim is to support stronger and more inclusive growth, create jobs, especially for women and young people, and reduce poverty. Improving the fiscal situation is also needed to stabilize and bring public debt towards more sustainable levels. Continued support from donors, particularly through concessional loans and budget grants, will be critical to program success and help Jordan cope with humanitarian and economic needs.
Although the program was designed before the COVID-19 outbreak, changes were made to the program to support unbudgeted spending covering emergency outlays and medical supplies and equipment. If the impact of the outbreak is deep enough to put at risk program objectives, the program will be adapted further to the changed circumstances, upon reaching understandings with the authorities.
Following the Board’s decision, an amount equivalent to SDR 102.93 million (about US$139.23 million) is available for immediate disbursement; the remaining amount will be phased out over the duration of the Fund-supported program, subject to eight program reviews.