AMMAN – On Wednesday, Minister of Finance Mohamad Al-Ississ confirmed that the
recent review by the
International Monetary Fund (IMF) affirmed the
government's successful fulfillment of its seventh review of its national
program requirements for financial and monetary reform without delay,
Al-Mamlaka TV reported.
اضافة اعلان
During his 2024 General Budget presentation,
he added that this success confirmed that Jordan managed to meet all the key
objectives of the program, a testament to the soundness of the Kingdom’s
financial and monetary policies. Despite current challenges, the economy is
confidently implementing
financial and economic reforms.
Ississ stated, "This certification, which
many countries aspire to, especially in times of global crises and disruptions,
contributed to Jordan obtaining better interest rates in global capital markets
than its counterparts in developing countries facing increased financing costs
and limitations due to financial and monetary instability."
He explained that Jordan reached an agreement
with the IMF on a new $1.2 billion financial and monetary reform program
extending until 2028. It draws strength from being crafted by Jordanian hands,
representing a strategic Jordanian choice to build on the achieved structural
reforms and enhance sustainability.
The program is based on several principles,
including: avoiding raising taxes, boosting capital spending, expanding the
social protection network without compromising the fundamental elements for
Jordanians, and protecting their income and livelihoods from any unforeseen
future repercussions.
It aims to gradually reduce the public debt to
around 79 percent of the
GDP by 2028. This serves as a significant support for
Jordan in these circumstances, sending a clear message to investors about the
resilience and stability of the
Jordanian economy in the face of external
shocks. It reaffirms Jordan's credibility in fulfilling its commitments,
implementing structural reforms, and ability to achieve what many other
countries have struggled with.
"This certification, which many countries aspire to, especially in times of global crises and disruptions, contributed to Jordan obtaining better interest rates in global capital markets than its counterparts in developing countries facing increased financing costs and limitations due to financial and monetary instability."
Furthermore, the program provides a crucial
guarantee for the government to secure the necessary funding for growth
stimulus at a lower cost than in financial markets.
Ississ mentioned that the unanimous decision
of credit rating agencies to maintain Jordan's credit rating with a positive
and stable outlook is a confirmation of the stability and resilience of the
national economy despite risks affecting economies of larger size, resulting in
a decline in their credit ratings.
He added that the Kingdom is the only
oil-importing country in the region that has preserved its credit rating as it
was before the
COVID-19 pandemic, the Russo-Ukrainian war, and inflationary
recession. The Ministry of Finance and the Central Bank successfully managed
monetary policies, defending the stability of the national economy. This
enabled the country to neutralize political pressures and deal with reforms,
especially amidst the ongoing developments in Gaza.
"The evaluation by international
institutions recognizes Jordan's achievements as a success story, demonstrating
its ability to absorb consecutive shocks. It also attests to Jordan's
credibility in addressing imbalances and rectifying distortions, revealing its
adaptability without resorting to tax increases, reduction of capital
expenditure, or cuts to social protection spending. This represents a
significant success for financial policies that have maintained financial
stability, allowing the economy to regain growth momentum, serving as a
fundamental guarantor to protect the middle class and preserve it,"
according to Al-Ississ.
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