Jordan: IMF Executive Board approves 3rd review of Jordan's EFF Programme
AMMAN — The International Monetary Fund (IMF) has completed the third review of Jordan's four-year Extended Fund Facility (EFF), enabling the Kingdom to draw an additional $134 million, the Fund announced on Wednesday.
The latest disbursement brings total financing under the EFF arrangement to nearly $595 million since its approval in January 2024. The programme aims to support Jordan's economic reform efforts and help maintain macroeconomic stability amid ongoing regional challenges.
In a significant show of support, the IMF also announced a separate $700 million programme under the Resilience and Sustainability Facility (RSF), aimed at helping Jordan tackle long-term challenges in the energy, water, and health sectors.
Following the IMF Board's meeting, Deputy Managing Director and Acting Chair Kenji Okamura praised Jordan for holding steady despite tough regional conditions.
'Growth in 2024 and so far in 2025 has exceeded expectations. Inflation is low, reserve buffers are strong, and the authorities are pursuing sound fiscal and monetary policies,' Okamura said.
According to the IMF, Jordan's international reserves topped $20 billion by the end of 2024, and the country's external position remains stable, with the current account deficit projected to stay near 6 per cent of GDP.
The Fund attributed the stable inflation and strong reserve position to the Central Bank for helping keep inflation in check and maintaining investor confidence through its commitment to the exchange rate peg.
The Fund also welcomed the government's gradual steps to reduce public debt while maintaining essential spending on social support and public investment. Jordan recorded a 2.5 per cent growth rate in 2024, and economic activity is expected to gradually strengthen going forward.
The new $700 million in RSF support will go toward reforms to strengthen the electricity and water sectors and boost Jordan's ability to respond to future health crises.
'These reforms are critical to strengthening Jordan's long-term economic resilience,' Okamura said.
The IMF reaffirmed its backing for Jordan's broader reform plans, which focus on encouraging private-sector growth, improving the business environment, and creating more opportunities, especially for youth and women.
The IMF emphasized the need for continued international support, noting that Jordan continues to feel the pressure of regional instability and the responsibility of hosting large numbers of refugees.
© Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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