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FINANCIAL NEWS
IMF agrees to lend Jordan USD2b
26 Jul 2012
(MENAFN) The International Monetary Fund (IMF) agreed to lend Jordan USD2 billion, to help the cash-stripped economy as it was hit by higher oil prices and uncertainty in the aftermath of the region’s Arab Spring uprisings, Reuters reported.
The global lender said in a statement that Jordan’s economy had been hit by external shocks that were outside the government’s control.
The IMF-backed program would seek to correct fiscal imbalances and promote policies to boost growth, IMF added.
The IMF also said Jordan’s finances were being strained by repeated disruptions in natural gas flows from Egypt that have pushed up energy prices.
The IMF added that regional political turmoil, coming from Syria and Egypt, and a slowing global economy have hit tourism to Jordan and caused a drop in worker remittances and foreign direct investment.
Slowing private sector growth has dragged down Jordan’s overall economic growth to 3 percent in the first quarter of 2012, according to government data released in June.
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