Jordan Country Analysis



Jordan Country Analysis

Introduction

IMF (International Monetary Fund) is an organization that is made up of one hundred and eighty eight country members. This organization works with the idea of fostering a monetary cooperation at a global standing. It aims at securing the financial stability, strives to promote employment, assists trade, sustain economic growth and take serious steps for reducing poverty from the world. IMF provides the needed financing and advice regarding the policies to the member nations, during the times of the member nations' economic hurdles and difficulties. Further, it works closely with the developing nations with a purpose of helping them achieve their stability at a macroeconomic level. Right after the end of the Second World War, the task for rebuilding the nations was put forward. International Monetary Fund is responsible for viewing and controlling the monetary system at a global level, for making sure the stability of the exchange rate and for also motivating the member countries for reducing the restrictions related to the exchange that creates hurdles for international trade. In short, IMF is responsible for the following;

Promoting exchange and monetary stability at a global level

Assisting with the growth and expansion of trade at an international level

Helping with the development of system that is multilateral, for assisting in the payments regarding the current transactions.

All in all, IMF provides loans to those countries that are in their development stage, surveys and monitors the economic activities in those countries and provide training and guidance to those nations that acquire IMF's help. In our discussion, we will be focusing on the country that is under Stand-By Arrangements sponsored by IMF. For our discussion, we have selected is El Salvador.

Discussion

IMF has leveled up for lending money to the countries in a response to the crises of an international economic level. In the March of 2009, it did an overhaul of the way how it goes about lending money to the countries in need, with better customized terms of repayments.

Ostensible economic reasons for the arrangement

The reasons for the arrangement are to reduce the level of poverty in the country, to preserve the stability pertaining to the financial conditions of the country, to pace up the recovery of the economic systems of the country and for securing the loan sustainability. Another reason was to support the demand at the domestic level through a fiscal policy which is countercyclical, in 2010. It includes the idea of bringing about modernization in the development of the road networks and electricity generation, (IMF, 2013).

Another important reason is to raise the efficiency and the reach of the social programs. The fund program will embed the anti crises program of the government. It aims to allow a GDP of one percent for the purpose of social spending in 2010-2011.

Size of the loan and the policy conditions attached to the loan

The executive board of IMF approved a thirty six month SDR 513.9 million SBA. The purpose for this was to assist the country for ...