EU Approves €100 Million In Financial Assistance For Jordan
The European Commission, on behalf of the European Union (EU), has today approved the disbursement of a €100 million loan to Jordan under its Macro-Financial Assistance (MFA) program.
This disbursement marks the launch of the second Macro-Financial Assistance program for Jordan with a total worth of €200 million, which follows a first package of €180 million approved in 2013 and fully disbursed in 2015.
The disbursement of the second €100 million installment is expected to take place during the course of 2018, depending on Jordan fulfilling agreed commitments.
Commissioner Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “Today’s decision to disburse €100 million to Jordan under a new MFA program 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 program and in securing a stable, stronger economy for Jordan to the benefit of its entire population.”
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.
The Macro-Financial Assistance program 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; trade policies and active labor 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.
Macro-Financial Assistance (MFA)
Macro-Financial Assistance is an exceptional EU crisis-response instrument available to the EU’s neighbouring partner countries experiencing severe balance of payments problems. It is complementary to the assistance provided by the International Monetary Fund.
MFA loans are financed through EU borrowing on capital markets. The funds are then on-lent with similar terms to the beneficiary countries.
The new MFA program for Jordan was adopted by the European Parliament and the Council on 14 December 2016. It follows a €180 million MFA operation that was disbursed in the course of 2015.
The policy conditions were agreed between the EU and Jordan, and laid down in the Memorandum of Understanding signed on 19 September 2017.
Since the beginning of the Syrian crisis in 2011, the EU has made available more than €1.6 billion to Jordan under different instruments to help the country preserve economic stability, sustain political and economic reform momentum, and address its related humanitarian, development and security needs.
In addition, the European Investment Bank has made available €264 million in loans to Jordan.
For more information:
More information on past MFA operations
Detailed information on MFA for Jordan
[Source: European Commission -/- Media Relations]
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