IMF: Jordan’s economic programme “broadly on track”

By on 26/04/2014

A programme of economic reform is continuing to yield positive results in Jordan, according to its latest consultation with the International Monetary Fund (IMF).

The IMF recently completed stages three and four of its ongoing review programme in Jordan, which accompanies a 36-month Stand-By Arrangement (SBA) with the government that is worth approximately US$2 billion.

Thanks to the positive outcome, the IMF has released a sum worth about US$264.7 million to the country, bringing total payments for the SBA so far to around US$1.3 billion.

Speaking about the latest consultation, the IMF’s deputy managing director and acting chair, Naoyuki Shinohara, said: “The Jordanian authorities remain committed to reforms and prudent policies despite a difficult environment. Their Fund-supported economic programme, focused on reducing external and fiscal vulnerabilities, remains broadly on track.”

Key priorities for the Jordanian government in 2014 include ongoing consolidation of the country’s fiscal system that is focused on protecting its most vulnerable citizens.

In addition, the IMF has encouraged it to implement measures to increase central government revenue “without delay”, and to make contingency plans in case government revenue turns out to be lower than anticipated.

In further recommendations, the Fund noted that Jordan’s energy and water sectors require ongoing reform, and identified a need to bring the nation’s tax burden more in line with its regional peers.

Shinohara stated: “Monetary policy should continue to focus on preserving comfortable reserve buffers.” He added: “Financial stability [in Jordan] would be further supported by enhancements in the supervisory frameworks and improvements in financial statistics.”

The IMF also noted a need for Jordan to “step up labour market and educational reforms, strengthen public institutions, and better prioritise public investment.”

About Kevin Sorkin

Pendragon International Media publish www.globalgovernmentforum.com, a community of senior government officials around the world. Global Government Forum is an important international network focusing on impartial, government news, analysis and best practice. The content addresses the real issues facing senior leaders in public service policy and administration today and aims to support them in developing public services for the future. Our aim is to help all organisations engage with this important community by improving understanding and strengthening relationships. I am the founder of the Civil Service Awards and Civil Service Live, which are now established industry leading brands and extremely important events for government. I also launched and published Civil Service World, civilserviceworld.com and Civil Service World Research and Information bringing together the civil service community to enable communication, sharing of best practice, inspire and motivate the civil service community. Over the years I have established relationships with the most senior officials in government and the private sector and have built a very strong and positive reputation across the industry.

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