Rabadi thanks EU for extending 200m-euro loan support to Jordan

AMMAN — Minister of Planning and International Cooperation Wissam Rabadi on Thursday expressed the government’s appreciation for the additional proposed support offered by the EU to Jordan, which has a value of 200 million euros.

The support comes in the form of a soft loan under the European Commission’s macro-financial assistance (MFA) package.

Rabadi, in a ministry statement shared with The Jordan Times, highlighted the importance and “crucial timing” of this support, given the current circumstances involving the repercussions of the COVID-19 pandemic.

In this exceptional situation, this EU assistance to Jordan will contribute to covering emergency monetary needs through providing direct funds to the Treasury, the minister said, noting that the loan will be offered with soft conditions, competitive interest rates and a long repayment period of up to 17 years.

Rabadi said that negotiations are now under way to determine the conditions of the soft loan, noting that the disbursement of the total amount will take place via three payments in 2020 and 2021.

The EU’s proposal is subject to adoption by the European Parliament and the Council of the EU, which is expected to take place during the second half of May, he said.

In December, the European Parliament agreed with a vast majority to grant Jordan a soft loan of 500 million euros with a low interest rate to support the Kingdom's economy and alleviate burdens of regional crises, raising the total amount of the MFA after the new proposed loan to 700 million euros, the statement read.

The European Commission adopted the proposal to provide the Kingdom with 500 million euros on September 6, 2019, as part of a new MFA to stimulate growth and investment, create jobs, support economic stability and speed up procedures to implement economic reforms.