## IMF Executive Board Concludes Second Review Under Jordan’s Extended Arrangement and Request for Augmentation of Access to Address the Impact of COVID-19

_IMF News, July 1, 2021_

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**Canonical URL:** [IMF Executive Board Concludes Second Review Under Jordan’s Extended Arrangement and Request for Augmentation of Access to Address the Impact of COVID-19](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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## Bibliographic details
- Published: July 1, 2021

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### Key outcomes and financing
- 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.

### Macroeconomic and social impact
- The authorities’ timely and effective policy response helped protect jobs and the vulnerable while preserving macroeconomic and financial stability.
- COVID-19 has caused:
  - unemployment rising to a record high,
  - widening fiscal and external deficits,
  - a sharp decline in tourism,
  - a delayed economic recovery.
- Jordan is hosting some 1.3 million Syrian refugees, increasing the country’s social and fiscal burden.

### Policy assessment and recommendations (from Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)
- 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:
  - Advanced key reforms to close tax loopholes,
  - Broaden the tax base,
  - Strengthen tax administration capacity.
- Public finance management:
  - Continued high-quality reforms needed to enhance the efficiency and transparency of public finances.
- Monetary policy:
  - Has been appropriately accommodative while supporting the peg.
  - Moving forward, monetary policy should remain flexible and data driven, balancing recovery entrenchment and monetary and financial stability.
- Financial sector:
  - Remains sound, but continued vigilance is warranted given possible delayed impacts on banks’ asset quality.

### Structural reforms and competitiveness
- Continued progress on structural reforms is essential for a durable and inclusive recovery.
- Priority reform areas highlighted:
  - Electricity sector reforms to address high electricity costs for businesses (crucial for job-rich growth and competitiveness).
  - Improving the business environment.
  - Reducing unemployment, particularly among women and youth.
  - Strengthening governance.
- The recent review of the most significant power purchase agreement was noted as an important step.

### Donor support and external financing needs
- 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:
  - Help Jordan navigate current challenges,
  - Strengthen its balance of payments,
  - Catalyze support from other development partners.

### Key statistics (exact figures from the review)
- 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

*IMF 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*

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## References

- [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)

_Source: https://www.imf.org/en/news/articles/2021/06/30/pr21203-jordan-imf-executive-board-concludes-2nd-review-under-extended-arrangement_