IMF makes $197 million available to Jordan
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The loan was released after the IMF's sixth review of the agreement with Jordan. The IMF's staff keeps track of the country's major economic indicators.
This type of stand-by agreement is generally used by middle- and high-income countries, and according to the IMF its purpose is to maintain the balance of payments or cover short-term debt. The interest rate is lower than the one generally applied on the financial market.
The stand-by agreement with Jordan was signed in August 2012, effective for 36 months. On that occasion, the IMF said Jordan would allocate the cash to addressing fiscal and external challenges and to sponsor balanced, inclusive growth.
The deal is worth the equivalent of $1.89 billion, of which roughly $1.5 billion have been used. The total amount may vary because calculations are based on the country's quota with the IMF, which in turn is determined by a basket of currencies such as the US dollar, the yen and the euro. ■