On Thursday, the International Monetary Fund (IMF) announced that its executive board approved the disbursement of a loan tranche to Jordan amounting to $206 million to assist the kingdom in coping with the ramifications of the COVID-19 pandemic and the burdens arising from hosting 1.3 million Syrian refugees. The fund stated in a press release that "the executive board approved an increase in the resources available under the Extended Fund Facility agreement by approximately $206 million."
The statement added, "The enhancement of support from donors will be a key factor in helping Jordan deal with the impact of the pandemic on the Jordanian people and in hosting 1.3 million Syrian refugees.”
The announcement noted that with this new disbursement, the total amount provided by the IMF to Jordan since the beginning of 2020 reaches approximately $900 million, including emergency assistance of $396 million that Amman received in May 2020 under the Rapid Financing Instrument.
The IMF explained that its executive board also "approved the authorities' request to increase resources available under the Extended Fund Facility agreement by approximately $200 million." The statement highlighted the negative impacts of COVID-19 on Jordan, specifically the "sharp decline in tourism leading to significant human and economic losses, where unemployment reached record high levels, delaying economic recovery."
The IMF commended Amman's "success in maintaining macroeconomic stability by achieving all key targets related to taxes and reserves, and making very strong progress in implementing a number of fundamental structural reforms." The fund also praised the "recent acceleration of the vaccination program in Jordan, one of the first programs in the world to cover refugees."
For the global financial institution, the priority for Jordan in the near term should be "to continue addressing the impacts of the pandemic." Consequently, the IMF approved an adjustment to the public finance goals for 2021 to accommodate "increased spending on essential healthcare, social protection, and job support programs."
The statement emphasized that the Jordanian authorities "remain committed to gradually ensuring public finances are supportive of growth and equitable as recovery takes hold, in order to strengthen the sustainability of the public debt."
