IMF approves $396 million for Jordan to fight coronavirus

IMF approves $396 million for Jordan to fight coronavirus
Jordan has been granted a loan in order to tackle the coronavirus pandemic, as the IMF dishes out emergency funds to combat the economic repercussions of the crisis.
2 min read
Loss of tourism revenue is contributing to an economic downturn in Jordan [Getty]
The International Monetary Fund on Thursday approved $396 million for Jordan to fight the coronavirus outbreak, a disbursement equal to about a quarter of its projected need amid the global economic downturn sparked by the pandemic.

The funds are the latest from the lender's Rapid Financing Instrument, which allows nations to circumvent the lengthy negotiations usually required to secure a full economic assistance program - time most countries do not have as they struggle to cope with the crisis.

The IMF said the country had "taken proactive efforts since the Covid-19 outbreak to protect safety of its citizens and refugees," noting the implementation of a curfew and the prioritisation of healthcare spending.

However the disruptions to tourism, remittances exports and capital inflows have created "an urgent balance of payments need," IMF Deputy Managing Director Mitsuhiro Furusawa said in a statement.

"The Covid-19 pandemic has had a severe impact on the Jordanian people's lives and on the economy," he said, adding that the money would "support international reserves and help meet the budget financing needs for crisis mitigation."

Jordan received a $1.3 billion assistance package from the IMF in March, of which the country immediately received $139.2 million, but the Washington-based crisis lender notes the country's situation "has worsened considerably" since then.

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