IMF approves $1.2 billion financing deal for Jordan
The International Monetary Fund (IMF) approved a $1.2 billion investment to Jordan on January 11, according to The National.
The fund’s board approved the billion-dollar investment which will replace the current funding agreed in March 2020 and expiring in March of this year.
Headquartered in Washington, the IMF is regarded as the global lender of last resort to national governments as well as a leader in exchange-rate stability support.
The current approval allows the Middle Eastern country to get its hands on $190 million and the rest of the hefty amount will be handed throughout the IMF program.
It is much needed aid for the country as the unemployment rate was at a high 22.5% as of 2022. Only the Palestinian territories of Gaza and the West Bank had worse unemployment figures that year in the region (25.7%).
READ: Osama Al-Sharif: Time for Assad to embrace a solution to Syria crisis
Thousands of Palestinians living in the West Bank, many of whom worked in Israel, lost their jobs as Netenyahu’s government stripped them of their Israeli work permits due to the escalation of tensions between the country and Gaza since early October. The economy in the illegally occupied territory has also completely tumbled.
The Jordanian government’s gross debt is estimated to rise to 112.7% of its GDP this year from 111.5% the year prior.
An IMF staff report on the country, published on January 11, found that, “Jordan has weathered a series of shocks relatively well, owing to adept policy making and sizable international support. Despite a challenging global and regional environment, Jordan has maintained macro stability, its economy is growing, albeit at a moderate pace, and inflation is low.
“However, despite progress achieved, unemployment is still very high, public debt is elevated and above pre-pandemic levels, and structural challenges weigh on private sector development.”
Jordan is known for accommodating refugees displaced by conflicts in the region. Recent UN data showed that around 2 million Palestinians now reside in the country amidst Israel’s historical brutalities on the state. Jordan is also home to around 700,000 Syrian refugees who have fled their war-torn country as the long-lasting civil war bristles on.
The National/ IMF
