The FINANCIAL -- The European Commission, on behalf of the European Union (EU), has on October 17 approved the disbursement of a €100 million loan to Jordan under its Macro-Financial Assistance (MFA) programme.
This disbursement marks the launch of the second Macro-Financial Assistance programme 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 instalment is expected to take place during the course of 2018, depending on Jordan fulfilling agreed commitments, according to the European Commission.
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 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."
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 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; 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.