Press Release No. 97/8

The International Monetary Fund (IMF) has approved an augmentation in the amount available to Jordan under its extended Fund facility credit (EFF) by the equivalent of SDR 37.24 million (about US$51.8 million). As a result, the EFF credit that was approved on February 9, 1996 in support of Jordan's medium-term economic and structural reform program (see Press Release No. 96/4) now amounts to SDR 238.04 million (about US$331 million).

Jordan has made commendable progress towards economic reform in the 1990s, and the outcome in terms of macroeconomic indicators has been impressive: growth has averaged around 6 percent annually; the underlying inflation rate has declined to around 3-4 percent; the external current account deficit has been reduced to 3 percent of GDP from almost 20 percent; and the external debt has been halved in terms of GDP.

On the basis of steadfast implementation of adjustment and structural reforms by the authorities and the strength of Jordan's economic program for 1997, the IMF's Executive Board, in the course of its second review of Jordan's economic program supported by the EFF, decided to approve Jordan's request for an augmentation of the EFF credit.