Jordan, IMF reach staff-level agreement on 3rd review under EFF

[19-11-2021 11:07 PM]

Ammon News -

inance Minister Mohamad Al-Ississ said that the Kingdom has successfully reached and the International Monetary Fund (IMF) a staff-level agreement, in a move that mirrors financial and economic stability in Jordan and enhances confidence in the Kingdom's ability to achieve economic recovery and overcome the challenges imposed by the COVID-19 pandemic on the national economy.

The minister, in a press statement on Friday, stressed that the main issue the government is seeking for to achieve is reducing unemployment rates and creating job opportunities for Jordanian youth by promoting economic growth.

Meanwhile, an International Monetary Fund (IMF) team led by S. Ali Abbas, concluded virtual discussions with the Jordanian authorities and reached a staff-level agreement on the third review of the authorities’ economic reform programme supported by the Extended Fund Facility (EFF) arrangement.

This agreement is subject to approval by the IMF’s management and the Executive Board, according to an IMF statement.

At the conclusion of the discussions, Abbas issued the following statement:

"Preventive actions and a robust vaccination campaign mitigated the effects of recent COVID-19 variants through the summer. Helped by the economic reopening, a recovery, supported by targeted fiscal and monetary measures, is underway, with real GDP growth expected around 2 per cent in 2021".

"Despite the challenging circumstances brought on by the pandemic, sound policies have helped maintain macroeconomic stability. The government is on track to narrow its fiscal deficit by 1 per cent of GDP in 2021, reflecting robust revenue collection on the back of a significant institutional effort to tackle tax evasion and improve tax compliance. At the same time, reserves maintained their comfortable level, helped by robust monetary policy and external financing. Jordan’s standing in international markets remains strong with spreads low compared to peers in the region".

"Growth is expected to accelerate in 2022 to 2.7 per cent as the recovery gains steam and structural reforms begin to bear fruit. Against this backdrop, agreement was reached on the fiscal targets for 2022, which will help stabilise public debt, while allowing space for the extension of important social protection and job retention programmes; and public investment, thereby bolstering the gradual recovery. At the same time, the programme will continue accommodating higher-than-expected health spending stemming from COVID".

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