Amman, June 17 (Petra) – The Executive Board of the International
Monetary Fund (IMF) approved Wednesday the completion of the fifth
review of Jordan’s Extended Fund Facility (EFF) programme and the
second review of its Resilience and Sustainability Facility (RSF)
arrangement, enabling the Kingdom to access additional financing of
$134 million under the EFF and $54 million under the RSF.

The IMF affirmed that Jordan has maintained macroeconomic stability
despite ongoing regional security challenges. The Fund noted that the
Jordanian economy entered the current period of regional tensions
from a position of strength, supported by prudent fiscal, monetary
and macroeconomic policies, as well as positive economic momentum.

According to the IMF, the government responded swiftly and
effectively to mitigate the immediate impact of the regional crisis.
Measures included strengthening energy security, facilitating trade
and supply chains and providing targeted support to the sectors most
affected, particularly tourism and industry. The government continued
to assist vulnerable households through the National Aid Fund.

The Fund indicated that the performance of Jordan’s IMF-supported
reform programme remains strong and on track. All quantitative
performance criteria for end-2025 and most indicative targets for
end-March 2026 were met, while all structural reform benchmarks
associated with the fifth review were completed.

The IMF welcomed progress in improving the business environment,
enhancing market competition, increasing labour market flexibility
and reducing the costs of transitioning to the formal economy. It
described the reforms as essential to supporting economic growth and
job creation.

Jordan’s economy grew by 2.8 per cent in 2025, up from 2.6 per cent
in 2024, driven by strong performance across the industrial,
agricultural, transport, mining and services sectors. Inflation
remained low at 1.8 percent.

Despite continued uncertainty arising from regional developments, the
IMF expects the impact on Jordan’s economy to remain limited.
Economic growth is projected at 2.7 per cent in 2026, rising to 3.1
per cent in 2027.

On public finances, the IMF noted that fiscal performance in 2025
exceeded programme targets, supported by stronger domestic revenues
and controlled current expenditures while preserving social spending.
The government achieved its primary budget deficit targets during the
first quarter of 2026 despite economic pressures resulting from the
regional conflict.

The Fund attributed the performance to prudent expenditure
management, the preservation of capital spending priorities and
efforts to keep public debt on a sustainable path despite pressures
on both revenues and expenditures.

Regarding monetary policy, the IMF praised the Central Bank of
Jordan’s continued commitment to maintaining monetary stability. The
Fund highlighted the country’s strong foreign reserve position, which
reached approximately $27 billion by the end of the first quarter of
2026.

The IMF noted that improving financial inflows helped reinforce the
stability of the Jordanian dinar’s peg to the U.S. dollar. Financial
markets remained stable, while dollarisation levels continued to
decline, reflecting strong confidence in Jordan’s macroeconomic
framework and policy direction.

In response to evolving economic conditions, the Central Bank of
Jordan introduced a JD760 million package of measures in April 2026
aimed at boosting banking sector liquidity and supporting affected
sectors. The measures included reducing reserve requirements on
demand deposits and expanding concessional financing programmes
through licensed banks, helping maintain credit flows to productive
sectors and strengthen economic resilience.

The government launched its National Programme for Financial and
Economic Reform at the beginning of 2024. Since then, five
consecutive reviews have been completed through the implementation of
a series of structural, fiscal, and monetary reforms developed and
executed by the government.

The reforms have contributed to preserving economic and financial
stability amid a challenging regional environment without imposing
additional financial burdens on Jordanians.

The successful completion of the reviews underscores the
effectiveness of the government’s economic policies and its ability
to navigate regional and global economic challenges.

The government reaffirmed its commitment to continuing sound economic
and financial reforms and strengthening resilience to external
shocks. These efforts aim to safeguard macroeconomic stability and
create conditions conducive to private sector-led growth and greater
employment opportunities for Jordanians.

//Petra// HA