AMMAN — The Kingdom’s ongoing financial and economic reform programme, implemented in partnership with the International Monetary Fund (IMF), is aimed at reinforcing economic stability, accelerating structural reforms, and placing public debt on a downward trajectory, Finance Minister Abdel Hakim Al Shibli said on Monday.

He added that the ultimate goal is to reduce public debt to 80 per cent of GDP by 2028, in line with Jordan’s Economic Modernisation Vision.

In a statement, run by the Jordan news agency, Petra, Shibli emphasised that the programme is designed not only to ensure fiscal and monetary stability, but also to create job opportunities, stimulate growth, and improve the quality of public services.

Among its core priorities are expanding the tax base through improved compliance, enhancing the financial sustainability of the electricity sector, and fostering a better business climate, he added.

IMF said last week that it had completed the third review of Jordan’s four-year Extended Fund Facility (EFF), enabling the Kingdom to draw an additional $134 million.

The latest disbursement brings total financing under the EFF arrangement to nearly $595 million since its approval in January 2024. The programme aims to support Jordan’s economic reform efforts and help maintain macroeconomic stability amid ongoing regional challenges.

The IMF also announced a separate $700 million programme under the Resilience and Sustainability Facility (RSF), aimed at helping Jordan tackle long-term challenges in the energy, water, and health sectors.

Shibli highlighted the successful completion of three consecutive IMF program reviews as a strong indicator of the resilience of Jordan’s economy and the soundness of its financial policies.

This milestone will unlock an immediate disbursement of $134 million to the Kingdom. The IMF has also praised Jordan’s economic management, noting that growth exceeded projections in 2024, reaching 2.5 per cent compared to the anticipated 2.3 per cent, which contributed to maintaining Jordan’s stable credit rating, he added.

Responding to public concerns over potential hardships from IMF-backed reforms, Shibli stressed that the partnership with the IMF is based on mutual goals and national priorities, not austerity measures.

He said that programme does not seek to impose new burdens on citizens. On the contrary, the government has recently taken steps to ease financial pressure on households, including lowering vehicle taxes and increasing allocations for the health sector, such as expanding cancer treatment coverage through a new agreement with the King Hussein Cancer Center.

Shibli also addressed the IMF Executive Board’s approval of a new $700 million Resilience and Sustainability Facility (RSF), calling it further proof of the government's reform commitment. The program aims to strengthen Jordan’s ability to sustainably manage its energy and water sectors, improve energy efficiency, enhance water resource management, and boost pandemic-related preparedness.

“It will provide affordable financing for critical capital projects without increasing external borrowing beyond the approved budget.”

On the recent increase in public debt, which reached JD 35.8 billion, or 93 per cent of GDP, during the first four months of 2025, Shibli said that the rise is temporary.

“As outlined in the Ministry of Finance’s March and April bulletins, the increase was driven by financing the budget deficit, covering losses in the electricity and water sectors, and securing $1 billion in concessional loans from partner countries. The government also issued Islamic sukuk at a competitive 4.8 per cent interest rate to reduce debt-servicing costs and fund development projects.”

He noted that $1 billion from those loans was deposited with the Jordan Central Bank, but still reflected in April’s debt figures. However, that amount has since been used to repay Eurobonds maturing this month, without issuing new ones of some 9 per cent interest rate.

By avoiding high-interest international borrowing, the government was able to reduce financing costs. As a result, the public debt is expected to decline to around JD 35.3 billion by the end of June, with the debt-to-GDP ratio, excluding Social Security Fund holdings, projected to fall to about 91 per cent.

 

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