AMMAN — Minister of Finance Mohamad Al-Ississ said that the Kingdom and the International Monetary Fund (IMF) have successfully reached a staff-level agreement, in a move that emphasizes the financial and economic stability in Jordan and enhances confidence in the Kingdom's ability to achieve economic recovery and overcome the challenges imposed by the COVID-19 pandemic on the national economy.
اضافة اعلان
In a press statement on Friday, the minister stressed that the government is focusing on reducing unemployment rates and creating job opportunities for Jordanian youth by promoting economic growth, according to the Jordan News Agency, Petra.
Meanwhile, an IMF team led by Ali Abbas concluded virtual discussions with the Jordanian authorities and reached a staff-level agreement on the third review of the authorities' economic reform program supported by the Extended Fund Facility (EFF) arrangement.
According to an IMF statement, this agreement is subject to approval by the IMF's management and executive board.
After the discussions, Abbas stated that: "Despite the difficult circumstances brought about by the pandemic, sound policies have helped maintain macroeconomic stability, and the government is on track to reduce the initial deficit by 1 percent of GDP in 2021, owing to institutional efforts to address tax evasion and improve tax compliance. At the same time, international reserves remain at a comfortable level with the help of strong external financing.
Jordan's position in international markets remains strong."
The Finance Ministry and the IMF predicted that real growth would accelerate in 2022, "as the recovery gains steam and structural reforms begin to bear fruit," said Abbas, adding that this agreement was reached on the fiscal targets for 2022, which will help stabilize public debt while allowing space for the extension of crucial social protection and job retention programs, and public investment.
These efforts would bolster the gradual recovery, and at the same time, the program will continue accommodating higher-than-expected health spending stemming from COVID, according to Abbas.
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