Jordan – The International Monetary Fund confirmed that it had completed consultations with Amman that led to its approval to disburse a tranche worth $131 million from a loan obtained by Jordan with a total value of $1.2 billion.
This came in a statement issued by the Fund on Thursday, in which it affirmed Jordan’s commitment to the economic reform program despite external geopolitical challenges, noting that the government has made progress in reforming its economic system.
Last January, the Executive Board of the International Monetary Fund approved a four-year agreement with Jordan, worth $1.2 billion, to support the economic program established by the Jordanian government.
The Fund stated in its statement that completing the second review allows for the disbursement of a tranche worth $131 million, out of the total size of the previously approved program of approximately $1.2 billion.
He added: “Jordan continues to show resilience and maintain overall economic stability, despite the difficult regional conditions resulting from the escalation of conflict in the region.”
However, the Fund noted that “the continuation and expansion of the scope of the conflict is having a greater impact on the Jordanian economy than expected at the beginning of the program. The economy is expected to grow by 2.3 percent this year, rising to 2.5 percent in 2025.”
He added: “The inflation rate remained low in 2024 at a level of less than 2 percent, thanks to the Central Bank of Jordan’s commitment to monetary stability and maintaining the fixed exchange rate system for the Jordanian dinar with the US dollar.”
Government revenues this year were affected by weak domestic demand, in addition to a sharp decline in the prices of major exported goods more than expected.
Article Four of the Agreement Establishing the International Monetary Fund stipulates bilateral discussions with member countries, which usually take place on an annual basis.
A team of Fund experts visits the member country, collects the necessary economic and financial information, and holds discussions with official officials about economic developments and policies in the country.
After returning to Fund headquarters, the experts prepare a report that forms the basis for Executive Board discussions in this regard.
Anatolia
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