Press Release No. 95/11

Press Release: IMF Approves Augmentation of EFF Credit to Jordan

February 13, 1995

The International Monetary Fund (IMF) today approved a request by the Jordanian Government to augment the amount available to it under the extended fund facility (EFF) by SDR 36.5 million (about US$54 million) to support the adjustment and structural reform policies the government is implementing under the EFF. The IMF Executive Board took the decision in conjunction with the second review of the three-year EFF arrangement of SDR 127.8 million (about US$181 million) supporting Jordan's medium-term economic and financial program approved on May 25, 1994 (see Press Release No. 94/36). This is the second augmentation made available to Jordan under the EFF; the first for SDR 25 million (about US$37 million) was approved on September 14, 1994 (see Press Release No. 94/63).

Jordan made further economic progress in 1994 under the EFF. Real GDP growth is expected to be higher than the program target (5.7 percent versus 5.5 percent), while, at 3.5 percent, the rate of inflation is expected to be lower than projected. The external current account deficit was significantly reduced, due in part to a strong export performance, while higher real interest rates have helped to rebuild gross foreign exchange reserves. At the same time, the policy of maintaining nominal exchange rate stability without resorting to exchange restrictions, together with strengthened economic policies under the EFF, has reassured the market and contributed to a resumption of remittances and private capital inflows.

Jordan joined the IMF on August 29, 1952; its quota¹ is SDR 121.7 million (about US$180 million), and its outstanding use of IMF credit currently totals the equivalent of SDR 77 million (about US$114 million).