Abstract
Since the approval of the EFF arrangement the near-term economic outlook has worsened considerably due to the COVID-19 crisis and the strict lockdown measures to contain it. In 2020, output is expected to contract sharply, fiscal and external balances are expected to deteriorate, public debt to increase, and a $1.5 billion balance of payments gap to emerge. With the first EFF review still several months away, and an ad hoc augmentation not being feasible in view of the difficulties in recalibrating the existing program to ensure that it remains on track to meet its objectives, the authorities have requested urgent support under the Fund’s Rapid Financing Facility (RFI). The proposed purchase of SDR 291.55 million, 85 percent of quota or about $400 million would cover about 1/4 of the financing need. The rest is expected to be covered by Jordan’s development partners and by targeting smaller accumulation of reserves than under the EFF arrangement.
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