Coronavirus: Jordan agrees to $400 million IMF loan, consulting other global bodies

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Jordan has agreed a $400 million loan with the International Monetary Fund, according to central bank governor Ziad Fariz, and is talking to other international institutions for extra support amid the coronavirus pandemic.

“The government will have to resort to borrowing and Jordan needs years to address the debt resulting from the crisis,” Fariz said late on Monday. The economy will start to recover at the end of the third quarter of 2020, and is expected to grow again in early 2021, he said.

He forecast that the budget deficit will widen by 1 billion dinars in 2020, to five percent of gross domestic product, due to declines in tourism revenues and exports during the health emergency. But he said the slump in oil prices would limit the negative impact on the current-account balance.

Later Tuesday, the US embassy in Amman announced assistance agreements worth $340 million with Jordan to fund programs in accountable governance, opportunities for women and the young, health and education, and water services.

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