IMF says could conclude talks on a new programme with Jordan by Feb 2016
AMMONNEWS - IMF and Jordan could conclude negotiations over a new programme by February to help advance reforms to push private sector economic growth after the end of a standby arrangement that helped bring fiscal adjustment, the IMF mission chief said on Tuesday.
Jordoan began talks this month on an Extended Fund Facility (EFF) to replace a three-year $2 bln standby arrangement that ended last August which brought fiscal stability but made limited progress in pushing structural reforms, Kristina Kostial said in a press conference.
'We will be talking about specific reform elements,' said Kostial adding the IMF mission would return back in January and by February 'hopefully successfully conclude the discussions'. The new programme could go to the IMF executive board for approval next April, Kostial added.
The two sides were in discussions over the size of the funding under the new EFF that was not expected to be in the same magnitude of the last standby agreement, Kostial said.
'It was that high because Jordan needed that much money because it had a much higher fiscal deficit. Now Jordan is in a better position so there is no reason for it be as high,' she said.
The budget deficit was brought down by 12 percent of GDP from a high 16 percent in 2012 when it became unsustainable after severe fiscal strains brought on by higher spending in the aftermath of the 'Arab Spring' protests in the region in 2011.
The cash-strapped kingdom was forced to sign the IMF deal in August 2012 to get the much needed funding to set it on the right track and stave off a major fiscal crisis.
Under the last IMF standby deal, Jordan raised subsidised fuel prices and gradually lifted electricity prices to reduce a huge energy bill hit by suspension of cheap Egyptian gas.
Kostial said the new IMF deal would also focus on reducing growing debt which is forecast to rise above 90 percent of GDP at the end of the year compared to 71 percent at end of 2011.
'We need further fiscal adjustment to reduce debt to safer levels and we need growth enchanting measures on the structural side. When we look at the Jordanian economy it's all about more growth.. creating more jobs,' Kostial said.
Jordan's foreign debt climbed to 21.6 billion dinars ($30 bln) after a series of borrowing agreements, including a $1.5 billion U.S. guaranteed Eurobond last June.
Kostial said the new programme would also address private sector driven growth, better governance and raising women's low participation in the labour market.
Growth was expected to fall below an estimated 2.9 percent to around 2.5 pct this year with Jordan's economy hurt by 'a difficult external environment.' It stood at 3 percent last year.
Officials say the economy had been hit by commercial ties with main trading partner Iraq being ruptured due to conflict there. In addition Syrian rebels took over Jordan's main border crossing with Syria this year, disrupting a billion-dollar trade in both directions.
*Reuters
AMMONNEWS - IMF and Jordan could conclude negotiations over a new programme by February to help advance reforms to push private sector economic growth after the end of a standby arrangement that helped bring fiscal adjustment, the IMF mission chief said on Tuesday.
Jordoan began talks this month on an Extended Fund Facility (EFF) to replace a three-year $2 bln standby arrangement that ended last August which brought fiscal stability but made limited progress in pushing structural reforms, Kristina Kostial said in a press conference.
'We will be talking about specific reform elements,' said Kostial adding the IMF mission would return back in January and by February 'hopefully successfully conclude the discussions'. The new programme could go to the IMF executive board for approval next April, Kostial added.
The two sides were in discussions over the size of the funding under the new EFF that was not expected to be in the same magnitude of the last standby agreement, Kostial said.
'It was that high because Jordan needed that much money because it had a much higher fiscal deficit. Now Jordan is in a better position so there is no reason for it be as high,' she said.
The budget deficit was brought down by 12 percent of GDP from a high 16 percent in 2012 when it became unsustainable after severe fiscal strains brought on by higher spending in the aftermath of the 'Arab Spring' protests in the region in 2011.
The cash-strapped kingdom was forced to sign the IMF deal in August 2012 to get the much needed funding to set it on the right track and stave off a major fiscal crisis.
Under the last IMF standby deal, Jordan raised subsidised fuel prices and gradually lifted electricity prices to reduce a huge energy bill hit by suspension of cheap Egyptian gas.
Kostial said the new IMF deal would also focus on reducing growing debt which is forecast to rise above 90 percent of GDP at the end of the year compared to 71 percent at end of 2011.
'We need further fiscal adjustment to reduce debt to safer levels and we need growth enchanting measures on the structural side. When we look at the Jordanian economy it's all about more growth.. creating more jobs,' Kostial said.
Jordan's foreign debt climbed to 21.6 billion dinars ($30 bln) after a series of borrowing agreements, including a $1.5 billion U.S. guaranteed Eurobond last June.
Kostial said the new programme would also address private sector driven growth, better governance and raising women's low participation in the labour market.
Growth was expected to fall below an estimated 2.9 percent to around 2.5 pct this year with Jordan's economy hurt by 'a difficult external environment.' It stood at 3 percent last year.
Officials say the economy had been hit by commercial ties with main trading partner Iraq being ruptured due to conflict there. In addition Syrian rebels took over Jordan's main border crossing with Syria this year, disrupting a billion-dollar trade in both directions.
*Reuters
AMMONNEWS - IMF and Jordan could conclude negotiations over a new programme by February to help advance reforms to push private sector economic growth after the end of a standby arrangement that helped bring fiscal adjustment, the IMF mission chief said on Tuesday.
Jordoan began talks this month on an Extended Fund Facility (EFF) to replace a three-year $2 bln standby arrangement that ended last August which brought fiscal stability but made limited progress in pushing structural reforms, Kristina Kostial said in a press conference.
'We will be talking about specific reform elements,' said Kostial adding the IMF mission would return back in January and by February 'hopefully successfully conclude the discussions'. The new programme could go to the IMF executive board for approval next April, Kostial added.
The two sides were in discussions over the size of the funding under the new EFF that was not expected to be in the same magnitude of the last standby agreement, Kostial said.
'It was that high because Jordan needed that much money because it had a much higher fiscal deficit. Now Jordan is in a better position so there is no reason for it be as high,' she said.
The budget deficit was brought down by 12 percent of GDP from a high 16 percent in 2012 when it became unsustainable after severe fiscal strains brought on by higher spending in the aftermath of the 'Arab Spring' protests in the region in 2011.
The cash-strapped kingdom was forced to sign the IMF deal in August 2012 to get the much needed funding to set it on the right track and stave off a major fiscal crisis.
Under the last IMF standby deal, Jordan raised subsidised fuel prices and gradually lifted electricity prices to reduce a huge energy bill hit by suspension of cheap Egyptian gas.
Kostial said the new IMF deal would also focus on reducing growing debt which is forecast to rise above 90 percent of GDP at the end of the year compared to 71 percent at end of 2011.
'We need further fiscal adjustment to reduce debt to safer levels and we need growth enchanting measures on the structural side. When we look at the Jordanian economy it's all about more growth.. creating more jobs,' Kostial said.
Jordan's foreign debt climbed to 21.6 billion dinars ($30 bln) after a series of borrowing agreements, including a $1.5 billion U.S. guaranteed Eurobond last June.
Kostial said the new programme would also address private sector driven growth, better governance and raising women's low participation in the labour market.
Growth was expected to fall below an estimated 2.9 percent to around 2.5 pct this year with Jordan's economy hurt by 'a difficult external environment.' It stood at 3 percent last year.
Officials say the economy had been hit by commercial ties with main trading partner Iraq being ruptured due to conflict there. In addition Syrian rebels took over Jordan's main border crossing with Syria this year, disrupting a billion-dollar trade in both directions.
*Reuters
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IMF says could conclude talks on a new programme with Jordan by Feb 2016
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