RIYADH: Jordan is set to receive $188 million in fresh International Monetary Fund financing to support economic reforms and stability amid continued disruption from the Middle East conflict.
The IMF Executive Board completed the fifth review of Jordan’s Extended Fund Facility arrangement and the second review under the Resilience and Sustainability Facility, unlocking immediate disbursements of 97.78 million Special Drawing Rights, equivalent to about $134 million, under the EFF and 39.59 million SDRs, or roughly $54 million, under the RSF.
SDRs are an international reserve asset created by the IMF to supplement member countries’ official reserves.
The decision supports the Jordanian government’s objectives of safeguarding macroeconomic and fiscal stability, reducing public debt, and fostering private-sector-led job creation, and comes as the country continues to navigate severe regional headwinds from the war in the Middle East.
“Jordan has preserved macroeconomic stability despite the strong headwinds from the war in the Middle East, supported by prudent policies, strengthened external buffers, and robust international support,” said Kenji Okamura, the IMF’s deputy managing director, following the Executive Board discussion.
He added that, with uncertainty remaining elevated, the authorities should maintain sound policies and accelerate reforms to bolster resilience and promote stronger, more inclusive growth.
According to the IMF, Jordan met all quantitative performance criteria and most indicative targets for end-December and end-March under the EFF program, while completing all structural benchmarks required for the fifth review.
The fund said fiscal performance remained in line with program targets through the first quarter of 2026 despite a challenging external environment.
Authorities have committed to gradual fiscal consolidation through the Medium-Term Revenue Strategy, improved spending efficiency and continued efforts to reduce losses at public utilities, while safeguarding social and development spending.
The IMF said monetary policy remains appropriately focused on preserving financial stability and supporting Jordan’s exchange-rate peg, with the banking sector continuing to demonstrate resilience.
It added structural reforms to improve the business environment, enhance labor market flexibility, and reduce formalization costs are being advanced to support private-sector-led growth. Performance under the RSF arrangement is also on track, with the required reform measure for the second review completed.
Okamura said accelerating structural reforms would be critical to fostering a more dynamic private sector and strengthening the economy’s resilience.
“Continued timely and sustained donor support will be important to support Jordan’s development objectives, while shouldering the cost of hosting a large number of refugees,” he added.
While growth is projected to pick up in 2027 with the launch of large investment projects, he noted that sustained, growth-friendly fiscal consolidation and ongoing RSF reforms remain critical to addressing long-term vulnerabilities and enhancing external stability.
