WASHINGTON (Pakistan Point News / Sputnik - 21st May, 2020) The International Monetary Fund (IMF) said in a statement on Thursday that it has approved $396 million in emergency financial assistance to Jordan to cover a portion of the country external financing stemming from the effects of the novel coronavirus disease (COVID-19).
"The Executive board of the International Monetary Fund (IMF) approved on May 20, 2020, Jordan's request for emergency financial assistance under the Rapid Financing Instrument (RFI) equivalent to SDR 291.55 million (about US$396 million, or 85 percent of quota)," the statement said. "The purchase under the RFI is projected to cover about a quarter of Jordan's external financing needs stemming from the COVID-19 shock."
The IMF said the remaining needs are expected to be covered by Jordan's development partners and by targeting smaller accumulation of reserves than under the $.13 billion arrangement under the Extended Fund Facility (EFF) approved on March 25.
While Jordan has taken bold efforts since the novel coronavirus outbreak to protect the safety of its citizens and refugees, its near-term economic outlook has deteriorated significantly since the IMF's approval of $1.3 billion four-year EFF in March, the IMF said.
Jordan's 2020 output is expected to contract, fiscal deficit is expected to widen, public debt to increase and a $1.5 billion balance of payments gap to emerge, the IMF said.
Jordan has reported 672 novel coronavirus with nine virus-related deaths, according to data compiled by the Johns Hopkins University Coronavirus Resource Center.
