The IMF decides to disburse a tranche of a loan to Jordan amounting to $131 million economy

The International Monetary Fund said that it had completed consultations with Amman that led to its agreement to disburse a tranche worth $131 million from a loan obtained by Jordan with a total value of $1.2 billion.

This came in a statement issued by the Fund yesterday, Thursday, in which it affirmed Jordan’s commitment to the economic reform program despite the external geopolitical challenges, indicating that the government has made progress in reforming its economic system.

Last January, the Executive Board of the International Monetary Fund approved a 4-year agreement with Jordan worth $1.2 billion, to support the economic program established by the Jordanian government.

The Fund stated – in its statement – that completing the second review allows for the disbursement of a tranche worth $131 million, out of the total size of the previously approved program, which amounts to about $1.2 billion.

He added that Jordan continues to demonstrate resilience and maintain overall economic stability, despite the difficult regional conditions resulting from the escalation of conflict in the region.

However, the Fund indicated that the continuation and expansion of the conflict has a greater impact on the Jordanian economy than expected at the beginning of the program. The economy is expected to grow by 2.3% this year, rising to 2.5% in 2025.

The Fund explained that “the inflation rate remained low in 2024 at a level of less than 2%, thanks to the Central Bank of Jordan’s commitment to monetary stability and maintaining the fixed exchange rate system for the Jordanian dinar with the US dollar.”

Government revenues this year were affected by weak domestic demand, in addition to a sharp decline in the prices of major exported goods more than expected.

Article Four of the Agreement Establishing the International Monetary Fund stipulates bilateral discussions with member countries, which usually take place on an annual basis.

A team of Fund experts visits the member country, collects the necessary economic and financial information, and holds discussions with official officials about economic developments and policies in the country.

After returning to Fund headquarters, the experts prepare a report that forms the basis for Executive Board discussions in this regard.