26 November 2019

Jordan and IMF hold talks for a new financial assistance programme

Jordan and the International Monetary Fund (IMF) have begun talks for a new, three-year financial assistance programme. This new loan will follow the previous one agreed in 2016, which amounted to $723 million. The financial institution has praised the efforts carried out by Jordan to improve its fiscal position, improve macro-economic indicators and enhancement of the business climate, as was recognized last week by the rating agency Moody’s. The Jordanian government and IMF officials agreed on priorities to maintain economic stability, boost growth, create jobs and strengthen social protection, long-term objectives. However, Jordanians are not so optimistic about the pace of reforms, whose taxation policies in particular have met a strong opposition. Weekly protests and a one month-long strike by the teachers have lead the government to refrain from proposing any new taxes’ increase in the 2020 budget.

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