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Prime Minister Abdullah Ensour on Tuesday said that the government is currently engaged in talks with the International Monetary Fund (IMF) over a new programme to stimulate economic growth.  

Ensour added that the expected deal with the IMF, the Extended Fund Facility (EFF), follows the “success” of the first programme, which was of “financial nature”. 

In August last year, Jordan and IMF concluded the three-year Stand-By Arrangement (SBA), which gave the Kingdom access to around $2 billion. 

The premier’s remarks came Tuesday during the Lower House’s oversight session in response to MPs’ queries about the government’s economic policies.

Ensour added that donor countries meeting in London for the “Supporting Syria and the Region Conference”, in February, linked their financial support to Jordan with economic stimulation programmes with the World Bank and the IMF.

“This is what we are doing now through ongoing meetings to arrive at an agreed upon programme,” Ensour said. 

The IMF and the government have recently started a second round of discussions over a new assistance programme to help the Kingdom implement medium-term structural reforms and to enable Jordan to benefit from the fund’s financing tools.

The EFF would focus on growth, job creation and improving the Kingdom’s business environment to be more attractive to investors. 
An informed source told The Jordan Times on Tuesday that a delegation from the Finance Ministry headed by Minster of Finance Omar Malhas were expected in Washington soon to continue negotiations over the new programme with officials at the IMF headquarters. 

The source said talks could be concluded this month as the two sides are currently discussing the size of the funding. Following the conclusion of negotiations, the IMF mission to Jordan would refer the programme to the fund’s executive board for approval. 

Former IMF mission chief to Jordan Kristina Kostial told The Jordan Times late last year that the size of the funding expected under the EFF would be less than the $2 billion in the form of low-cost loans under the SBA. 
Also during the session, Interior Minister Salameh Hammad said that trucks laden with Jordanian fruits and vegetables began some days ago entering the Iraqi market through Kuwait.

Hammad added that Jordan had to look for new trade routes after the closure of borders with Iraq and Syria due to war and unrest there. 

Minister of Industry and Trade Maha Ali said that the Jordanian exports to Iraq are exempted from customs fees according to the free trade agreement the two countries.

In a statement to The Jordan Times, Ali was quoted as saying that the ministry is following up with the Iraqis on news reports saying that the latter have imposed a 5 per cent customs fees on Jordanian exports.