AMMAN, July 2 (Xinhua) -- Jordan said on Monday that it will ask the International Monetary Fund (IMF) to renegotiate a 700-million-U.S.-dollar Extended Fund Facility reached between the two sides.
In 2016, Jordan reached a 36-month deal with the IMF to embark on reforms to reduce public debt and conduct fiscal reforms.
"Jordan seeks to have new negotiations about the period of the reform program to extend it and also hopes to revisit some of the deal's targets," said Jordan's Deputy Prime Minister Rajai Muasher.
The government is currently working on a national economic and fiscal reform scheme to be presented to the IMF during the talks that are expected soon, he noted.
"The plan takes the social and political conditions into account," said the minister, stressing Jordan's commitment to the fiscal reforms.
According to the latest official figures, Jordan's economy grew by 1.9 percent by the end of the first quarter of this year, which is less than expected, while the country's public debt represents about 96 percent of the GDP.
Under the deal, Jordan is expected to generate 520 million dinars (733.2 million U.S. dollars) in additional revenues, which seems to be a difficult tax to levy.
Finance Minister Ezzeddine Kanakrieh said on Monday that the key to triggering economic growth which will help increase revenues is fiscal and monetary stability.
Jordan has recently witnessed nationwide protests after several taxes were raised to meet the conditions of the IMF deal.
The protests led to the resignation of former Prime Minister Hani Mulki, and the newly formed government, headed by Prime Minister Omar Razzaz, withdrew a controversial income tax bill that sought to expand the base of income tax payers in Jordan.
