{
  "title": "IMF Executive Board Concludes Second Review Under Jordan’s Extended Arrangement and Request for Augmentation of Access to Address the Impact of COVID-19",
  "publication": "IMF News, July 1, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/06/30/pr21203-jordan-imf-executive-board-concludes-2nd-review-under-extended-arrangement",
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  "summary": "The Executive Board completed the second review of Jordan’s program supported by the Extended Fund Facility (EFF) on June 30.",
  "publishDate": "2021-07-01",
  "sections": [
    {
      "heading": "Key outcomes and financing",
      "content": "- The Executive Board completed the second review of Jordan’s program supported by the Extended Fund Facility (EFF) on June 30.\n- SDR 144.1 million (about US$206 million) will be made immediately available following completion of the review.\n- Total IMF disbursements to Jordan since the start of 2020 amount to SDR 641.51 million (around US$900 million), including an SDR 291.55 million (about US$400 million) purchase in May 2020 under the Rapid Financing Instrument.\n- The Executive Board approved the authorities’ request to increase access under the EFF arrangement by about US$200 million.\n- Jordan’s four-year EFF totals SDR 926.37 million (about US$1.3 billion, equivalent to 270 percent of Jordan’s quota in the IMF), approved on March 25, 2020."
    },
    {
      "heading": "Macroeconomic and social impact",
      "content": "- The authorities’ timely and effective policy response helped protect jobs and the vulnerable while preserving macroeconomic and financial stability.\n- COVID-19 has caused:\n  - unemployment rising to a record high,\n  - widening fiscal and external deficits,\n  - a sharp decline in tourism,\n  - a delayed economic recovery.\n- Jordan is hosting some 1.3 million Syrian refugees, increasing the country’s social and fiscal burden."
    },
    {
      "heading": "Policy assessment and recommendations (from Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)",
      "content": "- Near-term priority: manage the fallout from the pandemic.\n- Revised fiscal targets for 2021 aim to accommodate higher spending on critical health, social protection, and job-supporting schemes.\n- Authorities remain committed to implementing a gradual, growth-friendly, and equitable fiscal consolidation as the recovery becomes entrenched to bolster public debt sustainability and ensure inclusive growth.\n- Tax policy and administration:\n  - Advanced key reforms to close tax loopholes,\n  - Broaden the tax base,\n  - Strengthen tax administration capacity.\n- Public finance management:\n  - Continued high-quality reforms needed to enhance the efficiency and transparency of public finances.\n- Monetary policy:\n  - Has been appropriately accommodative while supporting the peg.\n  - Moving forward, monetary policy should remain flexible and data driven, balancing recovery entrenchment and monetary and financial stability.\n- Financial sector:\n  - Remains sound, but continued vigilance is warranted given possible delayed impacts on banks’ asset quality."
    },
    {
      "heading": "Structural reforms and competitiveness",
      "content": "- Continued progress on structural reforms is essential for a durable and inclusive recovery.\n- Priority reform areas highlighted:\n  - Electricity sector reforms to address high electricity costs for businesses (crucial for job-rich growth and competitiveness).\n  - Improving the business environment.\n  - Reducing unemployment, particularly among women and youth.\n  - Strengthening governance.\n- The recent review of the most significant power purchase agreement was noted as an important step."
    },
    {
      "heading": "Donor support and external financing needs",
      "content": "- The pandemic has significantly increased Jordan’s external financing needs.\n- Stepped-up support from donors and development partners is critical to help Jordan cope with the impact of the pandemic and the burden of hosting refugees.\n- The IMF’s financial support is expected to:\n  - Help Jordan navigate current challenges,\n  - Strengthen its balance of payments,\n  - Catalyze support from other development partners."
    },
    {
      "heading": "Key statistics (exact figures from the review)",
      "content": "- SDR 144.1 million\n- about US$206 million\n- SDR 641.51 million\n- around US$900 million\n- SDR 291.55 million\n- about US$400 million\n- about US$200 million\n- SDR 926.37 million\n- about US$1.3 billion\n- 270 percent\n- March 25, 2020\n- June 30\n- 2021\n- 2020\n- 1.3 million\n\nIMF Executive Board Concludes Second Review Under Jordan’s Extended Arrangement and Request for Augmentation of Access to Address the Impact of COVID-19 — Press Release No. 21/203\n\n---\n\n\n References\n\n- Mitsuhiro Furusawa\n- Jordan and the IMF\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- (see Press Release No. 20/107).\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/06/30/pr21203-jordan-imf-executive-board-concludes-2nd-review-under-extended-arrangement"
    }
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    "Published: July 1, 2021",
    "The Executive Board completed the second review of Jordan’s program supported by the Extended Fund Facility (EFF) on June 30.",
    "SDR 144.1 million (about US$206 million) will be made immediately available following completion of the review.",
    "Total IMF disbursements to Jordan since the start of 2020 amount to SDR 641.51 million (around US$900 million), including an SDR 291.55 million (about US$400 million) purchase in May 2020 under the Rapid Financing Instrument.",
    "The Executive Board approved the authorities’ request to increase access under the EFF arrangement by about US$200 million.",
    "Jordan’s four-year EFF totals SDR 926.37 million (about US$1.3 billion, equivalent to 270 percent of Jordan’s quota in the IMF), approved on March 25, 2020.",
    "The authorities’ timely and effective policy response helped protect jobs and the vulnerable while preserving macroeconomic and financial stability.",
    "COVID-19 has caused:",
    "Jordan is hosting some 1.3 million Syrian refugees, increasing the country’s social and fiscal burden.",
    "Near-term priority: manage the fallout from the pandemic.",
    "Revised fiscal targets for 2021 aim to accommodate higher spending on critical health, social protection, and job-supporting schemes.",
    "Authorities remain committed to implementing a gradual, growth-friendly, and equitable fiscal consolidation as the recovery becomes entrenched to bolster public debt sustainability and ensure inclusive growth.",
    "Tax policy and administration:",
    "Public finance management:",
    "Monetary policy:",
    "Financial sector:",
    "Continued progress on structural reforms is essential for a durable and inclusive recovery.",
    "Priority reform areas highlighted:",
    "The recent review of the most significant power purchase agreement was noted as an important step.",
    "The pandemic has significantly increased Jordan’s external financing needs.",
    "Stepped-up support from donors and development partners is critical to help Jordan cope with the impact of the pandemic and the burden of hosting refugees.",
    "The IMF’s financial support is expected to:",
    "SDR 144.1 million",
    "about US$206 million",
    "SDR 641.51 million",
    "around US$900 million",
    "SDR 291.55 million",
    "about US$400 million",
    "about US$200 million",
    "SDR 926.37 million",
    "about US$1.3 billion",
    "270 percent",
    "March 25, 2020",
    "June 30",
    "2021",
    "2020",
    "1.3 million",
    "[Mitsuhiro Furusawa](http://www.imf.org/external/np/omd/bios/mf.htm)",
    "[Jordan and the IMF](http://www.imf.org/external/country/JOR/index.htm)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[(see Press Release No. 20/107).](https://www.imf.org/en/News/Articles/2020/03/25/pr20107-jordan-imf-executive-board-approves-us-1-3-bn-extended-arrangement-under-the-eff)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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