Jordan: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director, and Advisor for Jordan

IMF Staff Country Reports, May 29, 2020

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Jordan: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director, and Advisor for Jordan

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Bibliographic details

• Published: May 29, 2020
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513545776.002

Overview

• Paper discusses Jordan’s Request for Purchase Under the Rapid Financing Instrument (RFI).
• The coronavirus disease 2019 pandemic has had a severe impact on the Jordanian people’s lives and on the economy.
• Tourism disruption and sharp declines in remittances, exports and capital inflows have resulted in an urgent balance of payments need.
• IMF financing under the RFI will support international reserves and help meet the budget financing needs for crisis mitigation.
• The authorities remain committed to the objectives of the reform program supported by the Extended Fund Facility arrangement, which was approved by the Board in March.

Economic impact and immediate needs

• Severe impact on lives and the economy due to COVID-19.
• Key channels of shock:
  • Tourism disruption.
  • Sharp declines in remittances.
  • Sharp declines in exports.
  • Sharp declines in capital inflows.
• Result: urgent balance of payments need.

Authorities’ public health and mitigation response

• Implemented decisive containment and health measures that effectively limited the spread of the virus with minimal fatalities.
• Implemented a timely package of policies to mitigate the economic fallout of the pandemic.

IMF support, financing needs, and mobilization

• IMF financing under the RFI will:
  • Support international reserves.
  • Help meet the budget financing needs for crisis mitigation.
• Mobilizing additional financing from multilateral and bilateral creditors will be essential to:
  • Support the authorities’ policy efforts.
  • Preserve macroeconomic stability.

Policy priorities once the crisis abates

• Resume fiscal consolidation to place public debt on a declining path.
• Pursue reforms to:
  • Strengthen the competitiveness of the Jordanian economy.
  • Support inclusive growth and job creation.

Subject tags and keywords (as provided)

• Subject: Arrears, COVID-19, External debt, Financial institutions, Fiscal policy, Fiscal stance, Health, Loans, Public debt
• Keywords: Arrears, COVID-19, CR, emergency financing request, financing, Fiscal stance, Global, growth potential, IMF lending tracker, IMF's Rapid Financing Instrument, ISCR, Loans, request for a Rapid Financing Instrument

Publication and document specifics

• Pages: 39
• Volume: 2020
• Issue: 180
• Series: Country Report No. 2020/180
• Stock No: 1JOREA2020002
• ISBN: 9781513545776
• ISSN: 1934-7685
• DOI: https://doi.org/10.5089/9781513545776.002
• Publication date on page: May 29, 2020

Jordan: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director, and Advisor for Jordan

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