IMF Approves $131 Million Loan Tranche for Jordan Amid Economic Reforms
The International Monetary Fund (IMF) has officially approved the disbursement of a $131 million tranche from a $1.2 billion loan to Jordan, following successful consultations with the Jordanian government. This decision reflects Jordan's ongoing commitment to its economic reform program, which has shown resilience despite external geopolitical challenges. The announcement was made on October 11, 2024, highlighting the progress Jordan has made in reforming its economic system.
In January, the IMF's Executive Board had sanctioned a four-year loan arrangement to bolster Jordan's economic initiatives. The recent approval allows for the disbursement of funds as part of the second review of the ongoing program, which aims to enhance Jordan's macroeconomic stability amidst regional turmoil.
The IMF noted that while Jordan's economy is projected to grow by 2.3% this year, rising to 2.5% in 2025, the escalation of regional conflict has had a more significant impact than initially anticipated. The inflation rate in Jordan has remained low, under 2%, attributed to the Central Bank's effective monetary policies and the fixed exchange rate system with the US dollar. However, government revenues have been affected by weak domestic demand and a decline in export commodity prices, indicating the challenges the country faces in maintaining economic stability.
