Jordan's starved economy should be fed 2 billion by IMF loan

Published August 1st, 2012 - 09:02 GMT

The International Monetary Fund has reached a $2 billion loan agreement with Jordan, where the economy has been slowed by higher oil prices and uncertainty in the aftermath of the region’s Arab Spring protests.

“The IMF staff agreed to support Jordan’s agenda for a socially acceptable fiscal consolidation,” the IMF said in a statement. “It will provide liquidity during the next three years, which will allow the authorities to gradually implement their agenda”.

It said Jordan’s economy had been hit by shocks that were outside the government’s control.

The IMF said government finances were being strained by repeated disruptions to natural gas flows from Egypt that have pushed up energy prices.

Regional political tensions, coming from Syria and Egypt, and a slowing global economy have hit tourism to Jordan and caused a drop in worker remittances and foreign direct investment, the IMF said.

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