Jordan, IMF reach staff-level agreement on third EFF review, $130m tranche expected
AMMAN — A staff team from the International Monetary Fund (IMF), led by Ron van Rooden, has recently concluded its mission to Jordan as part of the third review under the Extended Fund Facility (EFF).
The mission also engaged in initial discussions regarding a prospective arrangement under the IMF's Resilience and Sustainability Facility (RSF), the Jordan News Agency, Petra reported. The IMF team and the Jordanian government had reached a staff-level agreement on the third review, Petra reported.
Subject to approval by IMF management and the Executive Board, the agreement would release SDR 97.784 million (approximately $130 million) from a total programme size of SDR 926.370 million (about $1.2 billion).
'Programme performance continues to be strong, despite a challenging external environment,' van Rooden said in a statement. 'All quantitative performance criteria for the third review were met, and steady progress is being made toward achieving the programme's overall objectives, including key structural benchmarks.'
The IMF noted that Jordan maintained macroeconomic stability in 2024, achieving a GDP growth rate of 2.5 per cent and keeping inflation below 2 per cent. Fiscal performance was described as solid, with the budget deficit target achieved through strong policy measures, despite a drop in domestic demand and export prices.
Looking ahead, economic growth is projected to accelerate to 2.7 per cent in 2025, driven by a rebound in domestic economic activity, a recovery in tourism, and higher levels of foreign direct investment, according to the IMF.
The IMF also commended Jordan's commitment to advancing structural reforms aimed at promoting stronger, more inclusive growth and job creation, particularly targeting high unemployment among youth and women.
Priority reforms include improving the business climate, enhancing market competition, increasing labour market flexibility, and expanding the social safety net. The government also plans to further streamline regulations and digitise public services, including tax and customs administration.
The IMF staff will submit their findings to the Fund's management and Executive Board for final review and approval, according to Petra.
Minister of State for Economic Affairs Muhannad Shehadeh has commended the swift and successful conclusion of the mission review, describing it as "a reflection of the government's ongoing commitment to economic stability and reform."
On a post on LinkedIn, Shehadeh expressed appreciation to all those involved in the process, saying: 'I am immensely proud to express my gratitude to everyone who contributed to the swift review process, adding, "Your dedication and hard work are truly appreciated."
Shehadeh also welcomed the IMF's assessment, which said that Jordan's economy continues to show resilience and maintains macroeconomic stability despite global challenges. 'This accomplishment stands as a testament to our economic resilience. In the face of repeated external shocks, we have proven our ability to remain responsive, agile, and adaptable,' he noted.
The minister also reiterated the government's commitment to implementing key reforms that stimulate economic growth, in line with His Majesty King Abdullah's vision for comprehensive modernisation.
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