Revival in Jordan Markets after Early Disbursal of Salaries

People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)
People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)
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Revival in Jordan Markets after Early Disbursal of Salaries

People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)
People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)

Jordanian markets were revitalized in recent days after Prime Minister-designate Omar Razzaz ordered the early payment of salaries.

The rejuvenation coincided with the final days of the holy fasting month of Ramadan and the Fitr holiday that celebrates the end of the month. Market activity was noticeable at department stores and markets in western Amman, Abdoun and Jabal Al Hussein.

Markets were hit by recent protests against a contentious draft tax law. Razzaz’s appointment has eased the tensions.

The Consumer Protection Society (CPS) called on housewives against buying groceries on the eve of the Fitr holiday to avoid scams.

The Society also called on business owners to take into consideration the difficult economic situation in the country and avoid hiking prices.

In a related context, the Department of Statistics issued its monthly report on the record rate of inflation.

Figures showed that inflation in May reached 124.9 points compared to 118.9 for the same month in 2017.

The report showed that the record rate of consumer’s prices for the first five months of this year rose 4.1 percent compared to the same period in 2017.

Some commodities that contributed to this rise are tobacco (0.68 percent), rentals (0.43 percent) and fuel (0.29 percent). Major commodities whose prices dropped were vegetables and legumes (0.46 percent), clothes (0.05 percent) and shoes (0.01 percent).



IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.