IMF completes 2nd review under Extended Fund Facility for Jordan… 1st add

In this regard, Zhang stressed that the recent “London Initiative” has been most timely, and demonstrated the international community’s ongoing determination to support Jordan.

Continued donor assistance is key to help Jordan cope with the refugee crisis and support the government’s policy and reform efforts, the official also confirmed.

Zhang called on the government to continue on a path of gradual and steady fiscal consolidation, with due regard to social protection needs, noting that recent amendments to the income-tax law are encouraging and will be key in helping Jordan secure a fairer and more sustainable fiscal framework.

These reforms are crucial to preserve macroeconomic and external stability, place public finances on a sounder foundation, and lessen risks to debt sustainability, he further said.

Jordan’s monetary policy stance is appropriate, in light of the Central Bank of Jordan (CBJ) maintaining an adequate reserve buffer, he also added.

Zhang noted that banks remain sound and well-capitalized, and steps taken by the CBJ to improve financial sector oversight and supervision are welcome.

The IMF’s official said that the enactment of long needed growth-enhancing reforms is encouraging, including the secured-transactions law, the bankruptcy law, and the business-inspections law. Together with reforms to promote labor-market flexibility, particularly for the youth and women, and publication of a financial-inclusion action plan along with measures to support credit to SMEs.

Much has been done to set the stage for high-quality, inclusive growth. These efforts should continue, including measures to improve labor market conditions and strengthen the social safety net, he added.

It is critical to advance structural reforms to reduce business costs in order to enhance investment opportunities and create new jobs, the IMF official said, welcoming at the same time the government’s roadmap to restructure the energy companies to reduce high electricity costs for businesses .

Source: Jordan News Agency