European Commission approves100m-euro loan to Jordan

AMMAN — The European Commission (EC), on behalf of the European Union (EU), on Tuesday approved the disbursement of a 100-million-euro loan to Jordan under its Macro-Financial Assistance (MFA) programme, according to the commission’s website Europa.eu.

This disbursement marks the launch of the second MFA programme for Jordan with a total worth of 200 million euros, which follows a first package of 180 million euros approved in 2013 and fully disbursed in 2015. 

The disbursement of the second 100 million instalment is expected to take place during the course of 2018, depending on Jordan fulfilling agreed commitments, the commission’s statement said.

Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs, was quoted as saying: “Today’s decision to disburse 100 million euros to Jordan under a new MFA programme demonstrates the EU’s continued support for the country in these challenging times.” 

“I look forward to continuing our work with the Jordanian authorities on their reform programme and in securing a stable, stronger economy for Jordan to the benefit of its entire population,” Moscovici added.

Macro-Financial Assistance to Jordan is intended to “strengthen the country’s foreign exchange reserve position and to help Jordan meet its balance of payments and budgetary financing needs,” according to the statement.

The MFA programme will also support reforms in a number of areas. These include public finance management, the tax and social safety net systems; education and professional training; and trade policies and active labour market policies aimed at increasing employment opportunities for both Jordanian citizens and Syrian refugees living in Jordan.

The assistance is part of a wider effort by the EU to help Jordan and other countries in the region mitigate the economic and social impact stemming from regional conflicts and the presence of a large number of Syrian refugees in Jordan. 

The commitment of the EU and international partners was reiterated at the EU-Jordan Association Council in July 2017, and at the Brussels conference on “Supporting the Future of Syria and the Region” in April 2017, according to the EC.