IMF completes final review of economic programme in Jordan

The IMF has completed the seventh and final review of Jordan’s economic programme supported by a standby arrangement, the fund said.

The completion of the final review enables the disbursement of 284.1 million of the IMF’s special drawing rights (Dh1.45 billion), which function as a reserve currency. The three-year arrangement for 1.364bn special drawing rights was approved by the fund in August 2012.

“Jordan’s fund-supported program has helped the country to successfully weather severe external shocks, including the conflicts in Syria and Iraq. Gradual fiscal consolidation, aided by lower oil prices, ensured that public debt is expected to start stabilizing this year and, together with a prudent monetary policy, has preserved macroeconomic stability and supported confidence,” said Mitsuhiro Furusawa, the IMF’s deputy managing director.

“Although growth has slowed down in the first quarter of this year, the current account deficit is narrowing, foreign reserves remain at an adequate level, and inflation is low,” he said.

“Policies are on track to meet their 2015 targets. Fiscal structural reform is moving forward, financial policies are appropriately focused on further enhancing the resilience of the sector, and progress is also being made toward fostering private sector development.

However, Mr Furusawa pointed out there were still hurdles to overcome. And he reiterated the importance of boosting employmemt.

“There is also a need to move on structural reforms geared to job creation, and focused on labour market reform,” he said.

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