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FINANCIAL NEWS
Jordan in talks with IMF for USD1.4b loan
17 Jun 2012
(MENAFN) Jordanian government entered in talks with the International Monetary Fund over USD1.4 billion loan, Reuters reported.
Finance Minister Suleiman Al-Hafez said the cash would be used to help ease a worsening budget deficit that is expected to reach USD2.3 billion this year.
In May, Jordan increased the price of premium gasoline and electricity for major mining firms, hotels and banks, following the recommendation of the IMF.
Two weeks after the hike, the government increased lower grade gasoline (Octane 90) price by 12.9 percent.
Officials said the hike in gasoline prices along with fiscal prudence and restraint will help Jordan meet an IMF backed budget deficit target of around 6 percent of gross domestic product after grants that traditionally cover budget shortfalls.
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