He noted that the planned gradual fiscal consolidation, along with efforts to improve public investment management and monitoring of fiscal risks, will continue to support debt sustainability.
“Monetary policy is appropriately anchored in safeguarding the peg. The financial sector remains healthy, and the Central Bank of Jordan continues to closely monitor banks’ asset quality. Subsidized lending schemes should become more targeted and be gradually phased out as the recovery entrenches,” Okamura explained.
To further enhance the AML/CFT regime, Okamura said, the authorities are committed to implementing the remaining items in the action plan to exit the FATF’s watch list.
The IMF official underlined that electricity and water sector reforms are critical for preserving the sustainability of public finances.
“Timely implementation of the action plan prepared in consultation with development partners is key to credibly reduce NEPCO’s deficits. Strong policy efforts are also needed to address water scarcity and the persistent losses and arrears of the water sector. To this end, the recent adoption of the financial sustainability roadmap for the water sector is welcome,” Okamura added.
“Achieving strong and inclusive growth rests on steady progress on structural reforms to support female labor force participation, enhance youth employment and labor market flexibility, promote competition, reduce the costs of doing business, and strengthen governance and transparency,” Okamura concluded.
Source: Jordan News Agen