Jordan Seeks $1.4Bn IMF Loan Facility

Jordan is seeking to obtain a $1.4bn loan facility from the IMF to ease its tight public finances, Jordanian Minister of Finance Sulaiman al-Hafiz has said. The latest Jordanian government, which was formed in early May, has taken a number of austerity measures, including energy price hikes, subsidy cuts, and new taxes aimed at narrowing the budget deficit (MEES, 28 May). Mr Hafiz said that the funds would come from a special lending facility at the IMF known as a �precautionary and liquidity line� launched last November. A report in Jordanian daily Alrai of 19 June said that the IMF was ready to extend the loan to help Jordan deal with its financial challenges, but that the type of facility to be extended was still undetermined. Jordanian Minister of Planning and International Cooperation Ja'far Hasan estimates that half the $2.5bn that Jordan expects to receive this year in the form of grants and soft loans will go to support the state budget.

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