jordan pulse -

The Council of the European Union officially approved on Monday a new macro-financial assistance package for Jordan worth up to €500 million in concessional loans, aimed at supporting the Kingdom’s economic stability and reform agenda amid mounting internal and external challenges.

The aid package responds to a request submitted by the Jordanian government in October 2023 and is intended to help cover external financing needs while expanding the fiscal space required to sustain reform efforts.

The assistance will be disbursed over two and a half years in three instalments, offered under favourable loan terms that allow for long-term repayment and the possibility of a grace period.

The disbursement of each tranche will be tied to Jordan’s progress in implementing agreed-upon reforms, as outlined in a memorandum of understanding to be signed with the European Commission.

The decision will come into effect three days after its publication in the EU’s Official Journal.

Since 2013, the EU has provided Jordan with a total of €1.08 billion through three previous MFA programmes, the latest being MFA-III (2020–2023), which delivered €700 million in support of key reforms in public finance management, social policy, and governance.

Jordan and the EU have had a partnership agreement since 2002 and signed a set of partnership priorities in 2022, outlining a roadmap for bilateral relations through 2027.

EU support continues to play a vital role in helping Jordan manage the socioeconomic burdens resulting from the war in Syria and the large refugee population it hosts.