IMF approves $264m loan to Jordan

The IMF said it had reached an agreement with Jordan todisburse $264 million that represent the third and fourth review under the Stand-ByAgreement (SBA), according to an IMF statement.Head of the IMF mission to Jordan Kristina Kostial said the SBA is subject to theapproval of the Executive Board, which is tentatively scheduled to consider thereviews in late April. Board approval will allow for the disbursement of 264 millionfor the combined fourth and fifth tranches,” she added.“In recent years, Jordan has had to grapple with strong headwinds. The Syrian crisishas had major macroeconomic implications for Jordan, and disruptions of energyimports from Egypt have continued to put further pressure on Jordan’s external andfiscal accounts”.She said that during the mission’s visit to Zaatari refugee camp and the neighboringcity of Mafreq, the IMF team was impressed by Jordanian hospitality and support forthe Syrian refugees.The IMF statement said that growth in Jordan increased to about 3 percent in 2013with a strengthening in activity in financial services, telecommunication, trade, andconstruction. “Year-on-year inflation dropped to just above 3 percent. The currentaccount deficit is estimated to have improved by over 5 percent of GDP, to less than10 percent of GDP, helped by lower energy imports, higher transfers, and privatereceipts. However, unemployment remained elevated at 12.6 percent” it added.“During 2013, the government continued to reduce external and fiscalvulnerabilities. The appropriate monetary stance, improvement in the currentaccount, along with the confidence-driven deposit de-dollarization and the issuanceof two U.S. dollar-denominated domestic bonds and a U.S.-guaranteed Eurobond,allowed the Central Bank of Jordan (CBJ) to rebuild its international reserves to acomfortable level&rdqu