Jordan: €200m in loans approved

Council of the EU
  • 08/12/2016
  • 11:00
  • Press release
  • 746/16
  • Foreign affairs & international relations
  • Economy & finance
08/12/2016
Press contacts

François Head
Press officer
+32 22816083

On 6 December 2016, the Council adopted a decision providing €200 million in macro-financial assistance to Jordan, to help cover its balance of payments needs.

The EU assistance will help the country's economic stabilisation and will support a substantive reform agenda. It will supplement resources provided by the IMF, which has been discussing with Jordan a new support programme.

The money will be available for two and a half years. It will be provided in the form of loans, to be disbursed in two instalments with a maximum average maturity of 15 years.

In the light of the challenges Jordan faces in hosting more than 1.3 million Syrian refugees, the Commission will, if appropriate, make a proposal in 2017 to extend and increase the financial assistance.

Conditionality

The assistance will be subject to a memorandum of understanding (MOU), to be agreed by Jordan with the Commission. The MOU will lay down economic policy and financial conditions, focusing on structural reforms and sound public finances. It will include a timeframe for the fulfilment of those conditions.

A precondition for granting the assistance will be that Jordan respects effective democratic mechanisms, including a multi-party parliamentary system. It must also respect the rule of law and guarantee respect for human rights.

The Commission and the European External Action Service will monitor the fulfilment of this precondition for the duration of the macro-financial assistance.

Adoption

The decision was adopted without discussion at a meeting of the Employment, Social Policy, Health and Consumer Affairs Council.

Agreement was reached with the European Parliament on 27 October 2016. The Parliament approved the agreed text at first reading on 24 November 2016.