The European Union has approved the disbursement of a €100 million loan to Jordan under its Macro-Financial Assistance (MFA) program. The disbursement marks the launch of the second MFA for Jordan with a total worth of €200 million following up on the financial assistance provided in 2013 and 2015. The disbursement of the second half of the designated package is to take place in 2018 depending on the progress with Jordan’s commitments.
Commissioner Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, commented that “today’s decision to disburse €100 million to Jordan under a new MFA program 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 program and in securing a stable, stronger economy for Jordan to the benefit of its entire population.”
The aim of the MFA for Jordan is to boost the country’s foreign exchange reserve position and help it meet its balance of payments and budgetary needs. The program will also support reforms in public finance management, social safety net systems, education, professional training, trade and labor market policies. The package is also part of a broader effort to help Jordan mitigate the economic and social impact of refugee flows and other consequences of the regional conflicts.
Jordan has taken more than 630,000 refugees since the Syrian civil war began in 2011, whereby the Jordanian authorities estimate that the total count currently sits at around 1.4 million. The country has also been stepping up its scrutiny of incoming refugees due to the fears that many of the people waiting on the Syrian-Jordan border could be connected to foreign fighter groups.