- The IMF Executive Board completed the fifth review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF) arrangements with Jordan, making available about US$134 million under the EFF and US$54 million under the RSF to support the authorities’ economic program.
- Jordan has maintained macroeconomic stability despite strong headwinds from the war in the Middle East, supported by prudent policies, continued reform implementation, and robust international support.
- Program performance remains strong, with all quantitative targets met, structural benchmarks delivered, and continued progress on reforms to support resilience, economic growth, and fiscal sustainability.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the fifth review of Jordan’s arrangement under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF) arrangement. The completion of the reviews allows for an immediate purchase of SDR 97.784 million (about US$134 million) under the EFF and a disbursement of SDR 39.588 million (about US$54 million) under the RSF. This decision will support progress toward the authorities’ economic program objectives, including safeguarding macroeconomic and fiscal stability, reducing public debt, and fostering private-sector-led job creation. Jordan’s four-year EFF arrangement, with access amounting to SDR 926.37 million (about US$1.3 billion, equivalent to 270 percent of Jordan’s quota in the IMF), was approved by the IMF Executive Board on January 10, 2024 (see Press Release No. 24/004). In addition, the RSF arrangement for Jordan was approved on June 25, 2025 (see Press Release No. 25/221).
Jordan has maintained macroeconomic stability despite strong headwinds from the war in the Middle East, supported by prudent economic policies, continued reform implementation, and robust international support. While the war has led to temporary disruptions in energy markets, a decline in tourism, and higher shipping costs, most economic sectors have continued to operate normally, with some benefiting from stronger external demand and higher export prices. Inflation has remained low and external buffers are strong. Although uncertainty related to regional tensions remains elevated, growth is projected to pick up in 2027, supported by the launch of large investment projects.
Program performance under the EFF-supported arrangement remains strong. All quantitative performance criteria and most indicative targets for end-December 2025 and end-March 2026 were met, and all structural benchmarks for the fifth review were completed, with further reform progress underway. Fiscal discipline has been maintained despite the highly challenging external environment, and the authorities remain committed to gradual fiscal consolidation to place public debt on a firm downward path, anchored by their Medium-Term Revenue Strategy, targeted improvements in spending efficiency, and continued reductions in public utilities’ losses, while safeguarding social and development spending and the long-term financial sustainability of the pension system.
Monetary policy remains appropriately geared toward safeguarding financial stability and supporting the exchange rate peg. The authorities are advancing structural reforms aimed at improving the business environment and competition, enhancing labor market flexibility, and reducing the cost of formalization—key priorities to support private sector-led growth and job creation. Performance under the RSF arrangement is also on track, with the reform measure due for the second review completed.
Following the Executive Board discussion, Kenji Okamura, Deputy Managing Director and Chair, made the following statement:
“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. As uncertainty remains elevated and war-related disruptions linger, the authorities should maintain sound policies and accelerate reforms to bolster resilience and promote stronger, more inclusive, private-sector-led growth.
“The authorities have maintained fiscal discipline despite a challenging regional environment, with fiscal performance through the first quarter of 2026 in line with program targets. The authorities have appropriately taken measures to ensure fiscal sustainability, while protecting vulnerable households and viable firms through targeted and temporary support. Going forward, sustained, growth-friendly, gradual fiscal consolidation—supported by steadfast implementation of the Medium-Term Revenue Strategy and targeted improvements in spending efficiency—will be key to placing public debt on a downward path while protecting priority social and capital spending. Continued reforms to strengthen revenue administration and public financial management, safeguard the long-term financial sustainability of the pension system, and ensure the financial viability of public utilities remain critical.
“Monetary policy remains appropriately anchored in safeguarding financial stability and supporting the exchange-rate peg, which serves Jordan well. The banking sector remains sound, and ongoing efforts to strengthen systemic risk analysis, financial sector oversight, and crisis management are welcome.
“Accelerating structural reforms is paramount to foster a more dynamic private sector and support stronger and more resilient growth. The authorities are making progress on measures to improve the business environment and competition. Ongoing efforts must now advance more decisively to enhance labor market flexibility, incentivize labor force participation, and reduce formalization costs. 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.
“The continued implementation of reforms under the Resilience and Sustainability Facility arrangement will reinforce the authorities’ efforts to address long-term vulnerabilities and enhance external stability.”
read more: https://www.imf.org/en/news/articles/2026/06/17/pr26211-jordan-imf-completes-5th-review-under-eff-and-2nd-review-under-rsf-arrangements
