Main NewsWorld

EU proposes €500 million Macro-Financial Assistance to Jordan

By : JD

Jordan Daily – The European Commission has proposed a new Macro-Financial Assistance (MFA) operation to Jordan worth up to €500 million, marking a significant demonstration of the EU’s partnership and solidarity with Jordan.

In a statement seen by Jordan Daily , The proposed financial assistance aims to help Jordan cover part of its external financing needs, support the fiscal consolidation effort, and bolster structural reform efforts. This move is designed to ensure the continuation of Jordan’s ambitious reform agenda, promoting jobs, growth, and investment.

“Today’s proposal is a clear sign of the EU’s continued solidarity with Jordan,” said Ursula von der Leyen, Commission President. “With up to €500 million, we will support Jordan in these difficult times of geopolitical instability. And we will help ensure that Jordan’s transformative reforms for jobs, growth, and investment can continue.”

This new operation builds on the three previous MFA programmes, through which the EU has disbursed a total of €1.08 billion to Jordan since 2013. The final disbursement under the last MFA operation took place in May 2023. These programmes have helped Jordan address its urgent financing needs, including those arising from the COVID-19 pandemic, and have been a key driver of transformative reforms.

MFA funds are provided as long-term loans at concessional terms, with disbursements under this new operation planned to occur in three instalments. Disbursements under the proposed MFA would be strictly conditional on the implementation of specific policy measures to be agreed between the EU and Jordan, and set out in a Memorandum of Understanding (MoU). The MoU could potentially include policy reforms addressing economic governance, social and labour market policy, and the fight against fraud, corruption, and money-laundering.

The Commission’s proposal for a fourth MFA with Jordan is now subject to the approval of the European Parliament and the Council.

Back to top button