عربي English Türkçe اردو فارسى
Logo
Latest News
Business

IMF Approves $200 Million Increase in Jordan Borrowing Access

General view showing empty streets in Amman, Jordan October 9, 2020. REUTERS/Muhammad Hamed/File Photo
General view showing empty streets in Amman, Jordan October 9, 2020. REUTERS/Muhammad Hamed/File Photo
TT
TT

IMF Approves $200 Million Increase in Jordan Borrowing Access

General view showing empty streets in Amman, Jordan October 9, 2020. REUTERS/Muhammad Hamed/File Photo
General view showing empty streets in Amman, Jordan October 9, 2020. REUTERS/Muhammad Hamed/File Photo

The International Monetary Fund on Thursday said it had released $206 million to Jordan and approved Amman's request to expand the program by $200 million to help it continue battling the COVID-19 pandemic.

Stepped-up support from donors will be key to helping Jordan cope with the impact of the pandemic on the Jordanian people, while hosting 1.3 million Syrian refugees.

This brings total IMF disbursements to Jordan since the start of 2020 to around $900 million including a $396 million purchase in May 2020 under the Rapid Financing Instrument.

“Nevertheless, successive COVID-19 waves and the sharp decline in tourism have taken a significant human and economic toll, with unemployment reaching record high levels, and the recovery delayed.

Notwithstanding these challenges, the authorities have successfully maintained macroeconomic stability, notably by meeting all key fiscal and reserve targets, and made very strong progress on a large number of critical structural reforms,” according to IMF.

It added: “In the near term, the priority remains to manage the fallout from the pandemic. Thus, the revised fiscal targets for 2021 appropriately aim to accommodate higher spending on critical health, social protection, and job-supporting schemes.”

Moreover, Jordan’s vaccination program, one of the first in the world to cover refugees, has recently accelerated, IMF said.

The IMF stressed that the Jordanian authorities “remain committed to implementing a gradual, growth-friendly, and equitable fiscal consolidation as the recovery becomes entrenched, in order to bolster public debt sustainability and ensure inclusive growth.”

Jordan's Finance Ministry said the IMF encouraged Jordan's main Western and Arab donors to support the kingdom in "view of its strong commitment to stability and reforms" and its hosting of refugees.

Economic activity contracted by 3 percent in 2020, hit by lockdowns, border closures, and a sharp fall in tourism during the pandemic, but the government and the IMF both predict a bounceback to growth this year.

The gradual reopening of most of Jordan’s key business and manufacturing activities in the last few months is helping its economy to consolidate a gradual recovery, economists say.

The IMF’s approval of Jordan’s second review signaled confidence in the country's tempo of reforms and fiscal stability, the Ministry said.

Jordan’s Finance Minister Mohammad Al Ississ, earlier this year, said his country's commitment to IMF reforms helped it to maintain strong donor support and keep stable sovereign ratings at a time when other emerging markets were being downgraded.

Most Viewed

 
 
Business

Saudi Arabia Leads Int’l Efforts to Combat Climate Change, Land Degradation

Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Leads Int’l Efforts to Combat Climate Change, Land Degradation

Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)
Officials from the presidencies of the next three editions of the Conference of the Parties. (Asharq Al-Awsat)

The presidencies of the next three upcoming Conferences of the Parties (COP) — Saudi Arabia, Azerbaijan, and Colombia — held a meeting on the sidelines of the United Nations General Assembly in New York to outline their ambitions regarding the three Rio Conventions.

Additional meetings are scheduled for the last quarter of this year to address the pressing challenges of climate change, desertification, and biodiversity loss.

The Rio Initiative takes its name from the historic agreements made at the 1992 Earth Summit in Rio de Janeiro, Brazil. It aims to foster cooperation in tackling land degradation, climate change, and biodiversity loss, while boosting international efforts under the United Nations' environmental agreements.

On Sunday, world governments gathered in New York to establish a framework for addressing the threats posed by climate change, desertification, and biodiversity loss. The meeting focused on enhancing cooperation between the upcoming COP presidencies.

The participants included Saudi Arabia, set to lead the 16th Conference of the Parties to the United Nations Convention to Combat Desertification (COP16); Azerbaijan, which will chair the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29); and Colombia, which will head the 16th Conference of the Parties on Biological Diversity (COP16).

Saudi Arabia's presidency of COP16 highlighted the crucial importance of land restoration for the well-being of both people and the planet. It also underscored the devastating economic, social, and environmental impacts of land degradation and drought, which threaten biodiversity and increase greenhouse gas emissions, worsening food and water security challenges.

Dr. Osama Faqeeha, Saudi Arabia’s Deputy Minister of Environment, Water, and Agriculture, and advisor to the COP16 presidency, stated: "Climate change, biodiversity loss, and land degradation are interconnected aspects of the same crisis facing the planet, and they must be addressed in a more integrated and effective manner."

"This year presents a unique opportunity to unite efforts with Azerbaijan and Colombia and rally global support to address these interlinked environmental challenges, which have a destructive impact on the planet and its people," he added.

Colombian Minister of Environment and Sustainable Development Susana Muhamad emphasized the need for a unified agenda to be implemented on the ground. She expressed her readiness to establish a working group to bolster coordination and cooperation.

"The just transition in climate change must reflect interconnected efforts to protect natural ecosystems from degradation and harm," she said, adding: "We have a valuable opportunity to plan land use through a more integrated approach: decarbonization, environmental restoration, and improving human living conditions. COP16 for Biological Diversity is the ideal platform to deepen understanding and action on these efforts."

Mukhtar Babayev, president of COP29 for Climate Change, stressed the importance of "fostering cooperation, enhancing action efficiency, and achieving tangible results that benefit people and the planet by strengthening collaboration across the three Rio agreements."

He continued: "It’s essential to recognize that the goals of these agreements are fundamentally interconnected, and progress in one area can drive advancements in others."

Saudi Arabia called on governments attending the UN General Assembly to take decisive actions during COP16 for the United Nations Convention to Combat Desertification, which will be held in Riyadh in early December.

The UN Convention to Combat Desertification has set a target of restoring 1.5 billion hectares of degraded land by 2030. In Riyadh, Saudi Arabia's COP16 presidency will push for further concrete commitments to help achieve this goal.

The upcoming COP16 will be the largest and most comprehensive conference in the history of the convention, providing a global platform for collaboration. It will also offer opportunities for the private sector, civil society, and the scientific community to exchange solutions for combating land degradation, desertification, and drought.