The Executive Board of the International Monetary Fund (IMF) has decided the release a $77 million grant to the Jordanian government following its fourth and fifth review of the Kingdom’s performance under the Extended Fund Facility (EFF) arrangement, reported an IMF statement.
The grant brings Jordan’s total disbursements under the IMF-supported program to approximately $162 million. “Real growth has accelerated to over four percent, led by strong export growth, inflation remains low, the public debt ratio has declined significantly, international reserves have risen to a comfortable level, and interest rates are at historic lows,” said First Deputy Managing Director of the Board, Anne Krueger.
Krueger added that in 2001, Jordan’s fiscal deficit was also reduced, although less than the authorities originally planned. Last year market a period of structural reforms, including trade liberalization, a wide-ranging privatization program, and legal and administrative reforms.
Jordan’s 2002 economic program targets further fiscal consolidation through revenue and expenditure measures. Measures to extend the general sales tax to exempted and zero-rated products, to increase petroleum product prices, and other measures to reduce subsidies will be executed to strengthen the Kingdom’s budgetary position.
The EFF is an IMF financing facility that supports medium-term programs that seek to overcome balance of payments difficulties stemming from macroeconomic imbalances and structural problems. The repayment terms are 10 years with a 4.5-year grace period on principal payments. Current interest charged on purchases under the EFF is 2.7 percent annually. — (menareport.com)
© 2002 Mena Report (www.menareport.com )