Gov’t Pledges “IMF” to Implement “Strict Measures”

تم نشره في Sun 18 September / Sep 2016. 12:00 AM
  • IMF Entrance in Washington - (Archives)

AMMAN —Al Ghad— The government reassured the International Monetary Fund (IMF) in a statement of intent to the Fund’s executive board that Jordan will continue to implement strict economic and financial measures that do not reflect negatively on the more frail segments of society, while retaining the attainment of objective criteria, despite the percussions of external shocks and regional turmoil that effect the performance of Jordan’s national economy still.

The government’s application for the Credit Facilitation programme, approved in August, facilitates a USD723 million loan for Jordan, amounting 150 per cent of the Kingdom’s pre-set share of the Fund, under official guarantees by the State that works are underway to develop growth and lower indebtedness to safer levels, in accordance to joint Central Bank and Government strategies for the Jordan 2025 vision, having receiving the previous 3-year USD2 billion loan to support the national economic and financial reformation agenda, which according to state official have yet to be concluded.

In this discourse, the government highlighted to the IMF that Jordan still needs to score further development and progress to sustain in face of regional troubles, in light of the growing weights of hosting Syrian refugees, as well as the borders’ shutdown, which has reflected badly on exportation, tourism, investment, the labour market, and combined increased strains on Jordan’s already limited resources.

Over the course of recent years, Jordan’s economy has been showing a decreasing low growth rate, comparatively, in addition to increase in deficits and public indebtedness, coupled with an increase in poverty and unemployment.

Hence, the programme jointly devised by the IMF and the Jordanian government aim to stability macro-economy and reinforce response capacities to attain higher growth rate and address other crucial deformities in the economic and financial spheres, including increased competitiveness, and reconstructing the labour market to facilitate higher employment rate, in addition enhanced governance.

All factors in mind, the government ensured that the 2016-2019 agreement with the IMF, in spite of all difficulties at hand and upcoming, is necessary to sustain financial and fiscal stability.