Ammon News - An International Monetary Fund (IMF) mission led by S. Ali Abbas, reached a staff-level agreement on the fifth review of the authorities’ economic reform program supported by the Extended Fund Facility (EFF) arrangement . This agreement is subject to approval by the IMF’s management and the Executive Board.

"The program signed with the IMF is a fully national program based on national goals set by the government to raise the competitiveness of the economy to provide jobs, raise the level of transparency and improve financial accountability," Finance Minister Mohammad Al-Ississ said in a press conference with the IMF mission.

"The program seeks to strengthen the social protection network and maintain financial and monetary stability, something that many countries have lost in light of the difficult economic conditions the world is going through, including recession accompanied by inflation during the Covid-19 pandemic and the Russian-Ukrainian crisis," Al-Ississ added.

The importance of this review, according to Al-Ississ, lies in the assertion of key international financial institution that Jordan is still vigorously implementing financial and economic reform programs to achieve these goals, which is a key indicator in light of the instability the world is going through.

He pointed out that the government is still up to its commitment and decided, following this review, not raise taxes or fees, or impose new fees and taxes, indicating that the government "believes that the citizen is burdened with difficult life conditions and the taxes he bears."

According to Al-Assiss, Jordan is "economically, financially and monetary stable, and the Central Bank of Jordan (CBJ) has succeeded in maintaining monetary stability in light of unprecedented global economic conditions, and the economic challenges and difficulties that many countries are witnessing indicate the importance of this success."

CBJ Governor, Adel Sharkas, said the program aims to maintain macro, financial and monetary stability, and improve the ability of the national economy to face external shocks, thus contributing to achieving higher and more comprehensive growth rates, with a focus on reforming the labor market, raising economic participation rate and improving the business environment.

The IMF mission stressed the importance of the CBJ's firm commitment to maintaining the exchange rates of the Jordanian dinar with the dollar and its suitability for the national economy, which clearly serves the national economy and its role as a pillar of monetary policy, supported by comfortable and high reserves, which currently amount to about $16 billion, which is a comfortable level according to the indicators of adequacy of foreign reserves issued by the IMF.

The mission lauded the strength and durability of the banking system and its ability to withstand shocks and optimal risk management.

"Jordan's economy is on the right track, despite all shocks it is exposed to, and our financial and economic indicators are positive," the mission added, speaking of "a strong and solid banking system to push our economy towards further progress and prosperity."

"Despite turbulent global economic conditions, sound fiscal and monetary policies have helped maintain macroeconomic stability and access to international markets," IMF mission chief Ali Abbas said.

"The government is expected to narrow its primary deficit (excluding grants) by 0.7 per cent of GDP to 3.7 percent of GDP in 2022, with larger-than-expected fuel and food subsidy costs being offset by a rationalization of non-priority spending and a significant revenue overperformance," Abbas added.