IMF clears path for release of $294 million bailout tranche to Jordan

IMF clears path for release of $294 million bailout tranche to Jordan

The International Monetary Fund reached a staff-level agreement with Jordanian authorities on Tuesday to clear the way for the release of $294 million as part of the country's four-year bailout program.

IMF clears path for release of $294 million bailout tranche to Jordan

"Program performance has remained strong despite ongoing headwinds and elevated uncertainty stemming from the protracted war in the Middle East," said IMF mission chief Cesar Serra in a statement.

"All quantitative performance criteria and most structural benchmarks for the sixth review were met, and steady progress is being made toward achieving the program's overall objectives."

Jordan began a nearly $1.2 billion bailout program in 2024, with an additional $700 million in funding added a year later.

The release of the latest tranche is subject to approval by the IMF's executive board.

In late February, the United States and Israel launched the war on Iran, plunging the region into violence as Tehran's retaliatory action targeted Washington's allies including Jordan.

The country has, however, avoided the worst of the economic fallout of the war, felt most by regional oil exporters who have seen transport through the key Strait of Hormuz badly impacted.

As a result, as the outlook for growth for its neighbors has plunged, Jordan saw the IMF leave its 2026 growth forecast largely unchanged at 2.7 percent.

"Jordan's economy has continued to demonstrate resilience, supported by the authorities' commitment to prudent macroeconomic policies, proactive measures to mitigate the spillovers from the regional conflict, and strong support from international partners," said the IMF's Serra.

"While the war has weighed on Jordan's economy through lower tourism inflows, higher trade and transportation costs, weaker foreign direct investment, and elevated energy price volatility, these headwinds have thus far been largely offset."

The IMF praised Jordan's reform program, but said efforts could be strengthened in enhancing private sector competition, increasing labor market flexibility and encouraging firms to enter the formal economy.

Jordan has had a number of programs with the IMF since 1985 and has approximately $480 million in debt to the lender coming due by the end of 2027.

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