The IMF Board approves a new 4-year loan program for Jordan worth $1.2 billion

The Fund explained in a statement on Wednesday that the decision allows Jordan to immediately obtain an initial payment of approximately $190 million, with the remaining amount being distributed in stages during the program, subject to reviews.

The Fund reached an agreement at the expert level with Jordan on the new reform program on November 9, in a move that the Jordanian Minister of Finance, Muhammad Al-Assis, described as sending a message of confidence to investors.

The Executive Board's approval of the new Extended Fund Facility comes amid growing concerns that the war in Gaza is turning into a broader regional conflict.

The IMF said that the new program will build on Jordan's “strong performance under the previous program” to support the country's efforts to maintain macro stability, enhance resilience building, and accelerate structural reforms.

He pointed out that the funds will allow Jordan to continue the gradual adjustment of public financial conditions while protecting social and capital spending, improving the financial continuity of the electricity sector, and maintaining the exchange rate peg.

“Jordan has succeeded in overcoming a series of shocks over the past few years, maintaining macro stability and moderate economic growth thanks to skillful policy-making and significant international support,” said Kenji Okamura, Deputy Director General of the International Monetary Fund.

The International Monetary Fund noted that Jordan needs to make more progress in improving the business environment and attracting private investments to promote job-rich growth.

“In this regard, enhancing competition, continuing to reduce bureaucracy, and advancing labor market reforms to increase flexibility, reduce youth unemployment, and enhance women’s labor participation are crucial,” Okamura said.

The Fund noted that donor support remains essential to help Jordan overcome “the difficult external environment, host the large number of refugees, and maintain the reform momentum.”