The European Commission has adopted a proposal for a new Macro-Financial Assistance (MFA) operation to Jordan worth up to €500 million. This financial support is an important demonstration of the EU’s partnership and solidarity with Jordan.
The proposed financial assistance aims to help Jordan cover part of its external financing needs, support the fiscal consolidation effort and support structural reform efforts so that Jordan’s ambitious reform agenda can continue, promoting jobs, growth and investment.
Ursula von der Leyen, Commission President, said: “The proposal is a clear sign of the EU’s continued solidarity with Jordan. 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.”
The 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 to Jordan under the last MFA operation took place in May 2023. Past MFA programmes have helped the country address its urgent financing needs, including in the context of the COVID-19 pandemic, supported overall macroeconomic stability and were a key driver of the implementation of transformative reforms.
MFA funds are made available in the form of long-term loans at concessional terms. The disbursement under this new operation is planned to take place 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, as well as successful programme reviews under the IMF programme.
The MoU could, in principle, include policy reforms addressing economic governance, including public finance management and tax administration; social and labour market policy; and governance and fight against fraud, corruption and money laundering. The Commission’s proposal for a fourth MFA with Jordan is subject to the approval of the European Parliament and the Council.
