Jordan and IMF agree second funding tranche
The International Monetary Fund (IMF) executive council has agreed to dispense the second tranche of its “Stand-By Arrangement” loan for Jordan, to finance programme projects, at a total of $385 million, Finance Minister Umayya Toukan said on Wednesday.
The Kingdom secured this approval following a meeting between Toukan and IMF officials during which the two sides discussed the Kingdom’s economic reform programme.
According to Toukan, this approval indicates that the IMF believes the country’s economic reform programme is going in the right direction and in a sustainable manner without facing risks that may impede prospects of growth and social stability.
The IMF carries out regular reviews of the country’s economic programme during scheduled visits. On these trips, IMF representatives review the results of the economic correctional programme agreed on with Jordan, under which a $2 billion loan is to be given to the Kingdom in the period extending to 2015.
In September, the IMF will conduct another review of the country’s economic programme to decide when the third tranche of the loan. Jordan received the first payment of $385 million in 2012.