Jun 11, 2018

Gulf allies to give $2.5 billion to stabilize Jordan

Demonstrations in Amman Jordan. Photo: Salah Malkawi/Getty Images

Saudi Arabia, the UAE and Kuwait have pledged $2.5 billion to Jordan after mass protests over high prices and an unpopular tax bill led to "fears of another Arab Spring," per the WSJ. The funding "includes a deposit in Jordan’s central bank, funding to support the country’s budget for the next five years, World Bank guarantees and financing of development projects."

Between the lines: The tax bill was part of an IMF-backed series of austerity measures aimed at reducing Jordan's debt. King Abdullah II removed the prime minister (his 7th since 2011) and the tax bill was withdrawn. While Jordan, a key U.S. ally, has remained relatively stable, it has long relied "on wealthy allies to pay for short-sighted economic policies," the Economist notes.

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