AMMAN, Jordan — Budget-cutters in Amman have bread subsidies in their crosshairs once again, as the government tries to satisfy the conditions of an International Monetary Fund (IMF) agreement designed to help the economically strapped kingdom. The subsidies have come under government fire numerous times over the years, with each episode sparking protests and riots. This time around, authorities are trying to justify their intentions by claiming that 3 million non-Jordanian residents benefit from subsidized bread, in addition to 7 million Jordanian citizens.

On a talk show that aired Oct. 28 on the Roya satellite channel, government spokesman Mohammad al-Moumani said, “A total of 140 million dinars [around $197 million] is spent to subsidize bread consumed by 3 million non-Jordanian residents.” He also alleged that some bread is wasted and some of it is smuggled into other countries to take advantage of the price difference.

With Jordan struggling under an economic crisis, the country's leadership is striving to meet the requirements of the IMF agreement signed in August 2016 to extend Amman $723 million in loans over three years to support the country’s economic and financial reform program. The requirements include removing budget distortions and lifting subsidies on goods within the scope of the economic adjustment programs developed by the IMF since 1989. Jordanian economists and opposition figures say such programs have dictated the economic policies of successive Jordanian governments.

“The IMF is imposing its policy on debtor countries, including Jordan,” the economist Fahmi al-Ktout told Al-Monitor. “It requires these countries, in exchange for obtaining new loans, to lift subsidies on goods, liberalize markets and trade, and raise direct and indirect taxes.” According to Moumani's statements on Roya TV, however, the IMF is just an adviser, while the government has the final say on lifting and distributing subsidies.