IMF and Jordan Reach Staff-Level Agreement on 6th Economic Review and Climate Resilience Facility
The International Monetary Fund (IMF) concluded its diplomatic mission in Amman today with a giant macro-economic success. IMF Jordan agreement, Jordan and the IMF have reached staff-level agreement on the long-awaited 6th economic review, with rigorous fiscal measures in the face of huge geopolitical challenges.
The accord also clinches the third review of the country’s climate resilience helping facility, known as Resilience and Sustainability Facility (RSF). The reviews, when fully implemented by the IMF Executive Board, will approve a total of about SDR 216.548 million or a Jordan $294 million infusion of IMF cash.
The financial disbursement is divided strategically, according to official International Monetary Fund (IMF) press release. The review of the Extended Fund Facility (EFF) releases about $133 million for general monetary purposes and the review of the RSF releases about $161 million specifically for structural sustainability and environmental adaptability.
Fortifying Jordan Economic Stability Amid Regional War – IMF Jordan agreement
In the reports of the ones that took place from October 21 to November 3 the IMF lauded the exceptional fiscal discipline shown by the Jordanian authorities. Even though the war in the Middle East has been ongoing for a long time, and supply lines in the Red Sea have been disrupted, the IMF has not shaken its trust of the country’s economic reform program.
Jordan economic monitors in the region have said this is a sign of a lot of dividends. The Central Bank of Jordan managed to successfully keep its currency peg, curb internal inflation and create extremely strong buffer stocks of foreign currencies to support the local economy against external shocks.
The IMF expects Jordan’s economy to expand by 2.7 percent in 2026, before bouncing back to 3.1 percent in 2027 when major construction projects are expected to begin. In the near future, the Jordanian Ministry of Finance will continue with its efforts to aggressively reduce public debt to around 80 percent of the GDP, while taking great care to protect priority social spending and critical development projects.
The IMF expects Jordan’s economy to expand by 2.7 percent in 2026, before bouncing back to 3.1 percent in 2027 when major construction projects are expected to begin. In the near future, the Jordanian Ministry of Finance will continue with its efforts to aggressively reduce public debt to around 80 percent of the GDP, while taking great care to protect priority social spending and critical development projects.
Advancing the Climate Resilience Facility
The structural indicators under the RSF are intended to be proactive measures that help to protect the country from future environmental and biological risks. The third RSF review called for very specific reforms in infrastructure and health care, which the government has committed to making, as reported by the state-run Jordan News Agency (Petra).
These regulatory requirements were put in place, among others, by setting up a central register of state owned infrastructure assets in the critical infrastructure and energy industries. Moreover, the Ministry of Planning and International Cooperation has been able to streamline financing procedures in the event of public health emergencies and announced guidelines for emergency health-related benefits, enabling the government to quickly respond to any future health emergencies without running out of budget.
IMF mission chief Cesar Serra said that he was impressed with the positive dialogues he had with Prime Minister Jafar Hassan, Finance Minister Abdul Hakim Shibli and Central Bank Governor Adel Sharkas.
In the end, this IMF staff-level deal Jordan is a financial stabiliser for the whole region. Jordan successfully completed the 6th economic review and is making progress in advancing its climate risk facility, ensuring that it has the needed liquidity to continue dealing with the volatility in the region, while also highly encouraging private sector economic development.
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