AMMAN: Jordan will accelerate the pace of IMF-backed structural reforms to boost a growth-driven recovery from the blow to the economy from coronavirus, the finance minister said on Wednesday.
The International Monetary Fund said on Tuesday it had reached a staff agreement with Jordan to expand the country’s financing access by $200 million under an existing programme of structural reforms after a review found they were “firmly on track”.
“It’s an additional degree of confidence over financial, monetary and economic stability in Jordan,” Finance Minister Mohamad Al Ississ told Reuters.
The IMF said total disbursements to Jordan under the ambitious four-year reform plan, which included extra amounts drawn under emergency coronavirus loan facilities, would reach about $1.95 billion over the 2020-2024 period.
The IMF cautioned, however, that while Jordan achieved “strong progress” in key fiscal reforms that broadened the tax base and cut tax evasion, netting hundreds of millions of dollars to state coffers and ensured fiscal consolidation, the kingdom could not afford to slow down.
“We continue to be committed to accelerating financial and economic reforms to maintain financial stability that will in the end achieve the level of growth needed to create jobs and improve living conditions,” Al Ississ added.
Jordan’s economy was particularly hard hit last year by the shutdowns aimed at containing the virus, with unemployment at a record 24% amid the worst contraction in decades.
Both the government and IMF see the economy recovering to more than 2% growth and even higher if there are no extended lockdowns.
Jordan’s commitment to IMF reforms and investor confidence in the country’s improved outlook helped it to maintain stable sovereign ratings at a time when other emerging markets were being downgraded, Al Ississ said.
Earlier this month, rating agency Standard and Poor’s maintained the country’s B+/B sovereign credit rating, citing a track record in implementing fiscal consolidation.
Al Ississ said a 448 million dinar ($632 million) funding programme the cabinet approved on Wednesday would raise social spending and cushion the private sector from the latest restrictions and closures to stem a deadlier surge in the pandemic.
Comments
Comments are closed.