News Brief No. 02/30

News Brief: IMF Approves Extension of Arrangement with Jordan

April 12, 2002

The Executive Board of the International Monetary Fund (IMF) has approved an extension of Jordan's three-year, SDR 127.88 million (about US$160 million) Extended Fund Facility (EFF) arrangement (see Press Release No. 99/13) to May 31, 2002.

Jordan's arrangement with the IMF had been scheduled to expire on April 14, 2002. The Executive Board approved Jordan's request to extend the arrangement to enable completion of the fourth and fifth reviews of the country's performance under the EFF.

The delay in the completion of the reviews was due to the need to incorporate the new Plan for Social and Economic Transformation in the economic program and to discuss with the authorities other policies for 2002. The extension will also allow the authorities to implement measures to safeguard the achievement of the fiscal targets for 2002 that have been established under this ambitious plan.

An exact date for completion of the final reviews under Jordan's EFF is not yet established. But it is anticipated that completion will take place within the coming weeks.

The EFF is an IMF financing facility that supports medium-term programs that seek to overcome balance of payments difficulties stemming from macroeconomic imbalances and structural problems. The repayment terms are 10 years with a 4.5-year grace period on principal payments. Current interest charged on purchases under the EFF is 2.70% annually.