Jordan: Staff Report for the 2017 Article IV Consultation, First Review of the Extended Arrangement under the Extended Fund Facility, and Requests for Waiver of Nonobservance of Performance Criterion and Rephasing of Access—Informational Annex

2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Jordan


2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Jordan

Fund Relations

(As of April 30, 2017)

Membership Status: Joined August 29, 1952; Article VIII

General Resources Account:

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SDR Department:

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Outstanding Purchases:

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Latest Financial Arrangements:

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Projected Obligations to Fund 1

(SDR million; based on existing use of resources and present holdings of SDRs)

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Safeguards Assessment: Under the Fund’s safeguards assessment policy, the CBJ was subject to an assessment with respect to the Extended Arrangement under Extended Fund Facility (EFF), which was approved on August 24, 2016. The assessment, completed in November 2016, found that the central bank continues to strengthen its safeguards framework. The assessment made a number of recommendations, which the authorities are implementing.

Exchange System: The Jordanian dinar is fully convertible and is officially pegged to the SDR. In practice, the dinar has been pegged to the U.S. dollar since October 1995 at JD 1 = $1.41044. Jordan accepted the obligations of Article VIII, Sections 2, 3, and 4 in 1995 and maintains an exchange system free of restrictions on payments and transfers for current international transactions.

Last Article IV Consultation: The 2014 Article IV consultation was concluded by the Executive Board on April 28, 2014. The Staff Report and Executive Board Assessment can be found in IMF Country Report 14/152 at:

Financial Sector Assessment Program: Jordan participated in a Financial System Stability Assessment in 2003, and the related report was presented to the Executive Board at the time of the 2003 Article IV consultation (SM/04/1). A Financial System Stability Assessment Update was conducted in 2008, and the report presented to the Executive Board at the time of the 2008 Article IV consultation (SM/09/104).

Technical Assistance (TA): Extensive technical assistance has been provided to Jordan over recent years (see attached table).


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Jordan: Technical Assistance, 2011–17

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World Bank Group Strategy and Operations

1. On July 14, 2016, the World Bank Board of Directors approved a new WBG Country Partnership Framework (CPF) for Jordan for FY2017–22 [link]. The new CPF builds on the Systematic Country Diagnostic which was circulated to the Board in February 2016.

2. The overarching objective of the CPF is to help Jordan renew its social contract and promote economic and social inclusion. The CPF promotes an ambitious agenda for growth, jobs and inclusion while helping Jordan to address the impact of the Syrian crisis, including through innovative financing tools. The WBG is deploying concessional resources to support Jordan’s Syrian crisis response through an exceptional $100million International Development Association (IDA) allocation and the recent establishment of the Concessional Financing Facility.

3. As of April 2017, the World Bank’s active portfolio in Jordan included 11 projects valued at US$759 million in loans and grants. These projects cover a number of key sectors, including municipal services, education, energy, water, environment, public sector governance, public administration, social protection and labor, access to finance, and the business environment.

4. Over the past few years, the World Bank has supported Jordan’s capacity and performance in governance, fiscal management, public sector efficiency and private sector-led growth, through two reform driven, budget supporting “Development Policy Loans” (US$250 million each). The Bank has also recently supported the fiscal sustainability and efficiency of the energy and water sectors through a new multi-year “Programmatic Development Policy Loan” (first $250 million operation presented to the Board in July 2015; follow on operation to be presented to the Board in December 2016).

5. The Bank has also provided support to bolster Jordan’s resilience to the Syrian crisis. The large influx of refugees from Syria has strained the government’s capacity to deliver basic services and led to an increase in social tension, as well as in competition for jobs. An emergency loan of US$150 million, approved in July 2013, helped affected households maintain access to healthcare services and basic household goods. A complementary Emergency Services and Social Resilience Grant of US$65.9 million, approved in October 2013, leveraged grants from the United Kingdom, Canada, Denmark, Sweden and Switzerland. This project is helping municipalities strengthen their service delivery capacity, supporting local economic development, and fostering social cohesion in host communities. In September 2016, a $300 million Program-for-Results project was approved to promote Economic Opportunities for Jordanians and Syrian Refugees. The project is financed by IBRD (US$149 million), IDA (US$100 million) and a contribution from the Concessional Financing Facility (CFF) (US$51 million). The CFF also contributed to the Second Programmatic Energy and Water Development Policy Loan, approved by the Bank’s Board of Directors in December 2016, combining IBRD financing (US$225 million) and support from the Concessional Financing Facility (US$25 million). A concessional Emergency Health project is currently under preparation.

6. The International Finance Corporation (IFC) has maintained a strong program in Jordan with long-term finance investments totaling at around US$1.804 billion dollars, from 2011 to date. Landmark investments in the renewable energy sector include: (i) Tafila Wind - US$221 million debt package to finance the country’s first privately owned renewable energy facility; (ii) “Seven Solar Sister” - US$208 million financing package to support the largest private sector-led solar PV initiative in the MENA region. Other recent investments include a repeat investment of around US$94 million in Queen Alia Airport, US$11 million in Luminus, the leading private vocational and technical training provider in the country, and US$2 million to FINCA Jordan, a leading microfinance organization. IFC investments are largely concentrated in the transport, chemicals, and renewable power sectors. IFC has also provided strong advisory support focusing in the areas of corporate governance, regulatory simplification, energy efficiency, access to finance (credit Bureau & secured lending), Public Private Partnership, and skills development to match the needs of the private sector.

7. The Multilateral Investment Guarantee Agency’s (MIGA) outstanding gross exposure from investments into Jordan stood at US$440 million as of April 2017. MIGA supports: a U.S. investor for the expansion of the AS Samra Wastewater Treatment Plant; the expansion and operation of an existing bromine and bromine derivatives manufacturing plant; and two solar power plants through guarantees for Adenium Solar. MIGA’s support to foreign private investors sends a strong signal that Jordan remains a viable investment destination.

Statistical Issues

(As of May 15, 2017)

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Jordan: Common Indicators Required For Surveillance

(As of May 15, 2017)

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Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); not available (NA).

Reflects the assessment provided in the substantive update of the data ROSC published in February 2004 for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).

Same as footnote 8, except referring to international standards concerning (respectively) source data, statistical techniques, assessment and validation of source data, assessment and validation of intermediate data and statistical outputs, and revision studies.


When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.