Published: September 27, 2013
Money to go towards aiding structural reform.
The Arab Monetary Fund (AMF), a sub-organisation of the Arab League, has extended a US$117mn credit line to Jordan. The funding is to help the country carry out structural reforms mandated by the IMF. The financing consists of one three-year facility and a seven-year loan.
The AMF has lent Jordan a total of US$500mn. The country has also withdrawn US$100mn from a US$5bn fund that the Gulf Cooperation Council set up to help it quell social unrest. That money was spent on infrastructure projects.
The country’s budget deficit has grown rapidly in recent years; the government has kept food and fuel prices artificially low while increasing wages and pensions in order to reduce levels of public discontent.