Jordan unlocks USD 294 mn IMF tranche after reaching staff-level agreement

Jordan is set to receive another USD 294 mn tranche from the IMF after reaching a staff-level agreement with the government. That would bring the total disbursement under the Kingdom’s active IMF programs to about USD 1.2 bn.

The details: The disbursement, which is still pending the IMF’s Executive Board's formal approval, is comprised of two tranches from two different financing packages: USD 133 mn from a USD 1.3 bn package focused on fiscal reform and supporting private sector growth under the Extended Fund Facility (EFF) and USD 161 mn from a USD 700 mn program focused on supporting the water, electricity, and public health sectors under the Resilience and Sustainability Facility (RSF).

ICYMI- The IMF praised Jordan’s “fiscal discipline” last summer, after it wrapped up its latest periodic review of both facilities. Jordan then received USD 187 mn earlier under the EFF and RSF packages.

The Fund praised Jordan’s economic management again, but said more needs to be done on structural reform. It praised Jordan’s “commitment to prudent macroeconomic policies [and] proactive measures to mitigate the spillovers from the regional conflict, but flagged regional developments' impact on the economy through lower tourism inflows, higher trade and transportation costs, weaker foreign direct investment, and elevated energy price volatility. It also said further structural reforms — particularly enhancing competition, increasing labor market flexibility, and promoting formalization — will be critical to sustaining job-rich growth.

The macro picture: Jordan’s economy grew by 3% in 1H 2026, and the country met its budget deficit target in 1H despite falling tax revenues during the same period. In its latest report, the IMF projected Jordan’s growth at 2.6% this year and 3% next year.