Jordan to push ahead with IMF-backed reforms to spur growth -finance minister

AMMAN, Feb 14 (Reuters) – Jordan will speed up the momentum of IMF-backed structural reforms in 2022 to assist a nascent restoration collect tempo in an economic system onerous hit by the coronavirus pandemic and regional turmoil, the finance minister mentioned on Monday.

Mohamad Al Ississ instructed lawmakers forward of a parliamentary session which handed the ten.6 billion dinars ($15 billion) 2022 finances that Jordan may in poor health afford any delay in reforms.

“The method of reform and coping with the distortions and imbalances is extra urgent and essential than ever,” he mentioned in a speech forward of a vote on the finances.

The IMF mentioned in January after the dominion accomplished a 3rd assessment of an formidable four-year $1.5 bln programme that the nation’s progress in reforms was serving to preserve macroeconomic stability whereas supporting a nascent restoration.

The return to 2 % progress final yr after a steep 1.5 %contraction in 2020, the worst in many years from the affect of the pandemic, confirmed “indicators of financial restoration,” Al Ississ mentioned.

Development was anticipated to succeed in 2.7 % in 2022, signalling an finish to the recession and again to pre-pandemic ranges.

Al Ississ, who gained reward from the IMF for what it mentioned have been sound fiscal reforms that closed tax loopholes and broadened the tax base and generated the most important income positive aspects in a few years, mentioned the finances deficit had fallen by 453 million dinars to five.4 % of GDP in 2021 in opposition to 7 % the earlier yr.

The deficit was earmarked to fall to three.1 % of GDP within the 2022 finances, the IMF mentioned.

Many parliamentarians, throughout a six-day session, criticized the federal government for failing to cut back public debt that stood at 29 billion dinars or almost 91% of GDP. They known as for extra state jobs to soak unemployment that hit document ranges of round 24% .

Al Ississ blamed the rise in public debt to a borrowing spree within the final decade to cowl increased safety prices at a time of regional unrest together with closure of borders with Syria and Iraq, accentuated with a significant inflow of refugees.

Debt service would fall in 2022 for the primary time in years with cheaper financing that changed business borrowing with delicate loans from main donors, Al Ississ mentioned.

Jordan’s improved outlook helped it to keep up steady sovereign scores at a time when different rising markets have been being downgraded, Al Ississ mentioned.

($1-0.709 dinars)

Reporting by Suleiman Al-Khalidi; enhancing by Grant McCool

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