IMF approves $264 million loan to Jordan

تم نشره في Sat 5 April / Apr 2014. 08:17 PM - آخر تعديل في Sat 5 April / Apr 2014. 08:17 PM
  • (File photo)

AMMAN - The International Monetary Fund (IMF) said it had reached an agreement with Jordan to disburse $264 million that represent the third and fourth review under the Stand-By Agreement (SBA), according to an IMF statement.

Head of the IMF mission to Jordan Kristina Kostial said the SBA is subject to the approval of the Executive Board, which is tentatively scheduled to consider the reviews in late April.

"Board approval will allow for the disbursement of 264 million for the combined fourth and fifth tranches".

"In recent years, Jordan has had to grapple with strong headwinds. The Syrian crisis has had major macroeconomic implications for Jordan, and disruptions of energy imports from Egypt have continued to put further pressure on Jordan’s external and fiscal accounts".

She said that during the mission's visit to Zaatari refugee camp and the neighboring city of Mafreq, the IMF team was impressed by Jordanian hospitality and support for the Syrian refugees.

The IMF statement said that growth in Jordan increased to about 3 percent in 2013 with a strengthening in activity in financial services, telecommunication, trade, and construction.

"Year-on-year inflation dropped to just above 3 percent. The current account deficit is estimated to have improved by over 5 percent of GDP, to less than 10 percent of GDP, helped by lower energy imports, higher transfers, and private receipts. However, unemployment remained elevated at 12.6 percent," it added.

"During 2013, the government continued to reduce external and fiscal vulnerabilities. The appropriate monetary stance, improvement in the current account, along with the confidence-driven deposit de-dollarization and the issuance of two U.S. dollar-denominated domestic bonds and a U.S.-guaranteed Eurobond, allowed the Central Bank of Jordan (CBJ) to rebuild its international reserves to a comfortable level". (Petra)