Talks with IMF on new programme to start next week

AMMAN — Jordan and the International Monetary Fund (IMF) will begin next week negotiations over a four-year fund-supported programme, Finance Minister Omar Malhas announced on Tuesday.

Malhas was quoted by the Jordan News Agency, Petra, as saying that a mission from the IMF will arrive early next week to the Kingdom to discuss with officials various aspects of the programme and have a close look at the recent developments in the national economy. 

He added that the IMF mission will hold extensive meetings with officials from the finance, planning, industry and trade, labour and tourism, water and irrigation and energy ministries as well as the Central Bank of Jordan and other government agencies, banks and companies.    

An IMF team, led by Martin Cerisola, visited Amman from March 27 to April 4 to take stock of economic developments since the last fund’s visit in November 2015, and to discuss with the authorities plans for economic policies and reforms that could be part of a fund-supported programme, the Extended Fund Facility (EFF).
Cerisola, who has replaced Kristina Kostial as IMF chief mission to Jordan, told The Jordan Times at the time that the discussions focused on how to continue striking the delicate balance between sustaining fiscal consolidation and debt sustainability, with the need to implement policies and reforms to support economic growth and promote employment in a difficult economic and regional context. 

The IMF and the government started late last year discussions over the new assistance programme, designed to help the Kingdom implement medium-term structural reforms and to enable Jordan to benefit from the fund’s financing tools. 

The EFF would focus on growth and job creation and improving the Kingdom’s business environment to be more attractive to investors, according to the statement.

The EFF follows the three-year Stand-By Arrangement in August last year, which provided the Kingdom with access to around $2 billion.