Following receipt of the final installment of a $2bn stand-by agreement (SBA) in August, Jordan is now discussing a new fund-supported programme with the Washington-based IMF.

The new programme, called Extended Fund Facility (EFF), was one of the main discussion points in the recently concluded IMF mission led by Martin Cerisola, who recently replaced Kristina Kostial as IMF chief mission to Jordan.

The discussions focused on how to continue striking the delicate balance between sustaining fiscal consolidation and debt sustainability, with the need to implement policies and reforms to support economic growth and promote employment in a difficult economic and regional context, according to a local media report.

Discussions on the EFF began in 2015 to help Jordan implement its medium-term structural reforms specifically in terms of job creation and improving the kingdom’s business environment to be more attractive to investors.

Jordan’s economy continued to struggle in 2015 due to a slowdown in its key sectors, including agriculture and exports, as well as worsening regional instability. This has been further exacerbated by the influx of refugees from Syria. The IMF revised its growth projection for Jordan three times in 2015, starting with an initial 3.8 per cent in May, to 3 per cent in August, 2.9 per cent in October and finally 2.5 per cent in November.

The IMF’s initial growth forecast for 2016 is 3.2 per cent, which is slightly lower than Jordan’s own projections of 3.7 per cent.