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EU approves €200m loan to Jordan

Image of Euro notes [pixabay]
Euro notes [pixabay]

The European Council approved a €200 million loan for Jordan on Tuesday, a statement on the organisation's website revealed.

"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 statement added.

Rapid population growth, a surge in refugees and the climatic conditions of the country have put significant pressure on Jordan.

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.

The council also stated that 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.

The EU confirmed that its assistance is subject to a memorandum of understanding (MOU), which is to be agreed by Jordan with the commission. It said that "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."

The EU has also set preconditions for granting the assistance cautioning Jordan specifically about the need to respect effective democratic mechanisms, including a multi-party parliamentary system. It also stressed that Jordan must 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.

EUInternational OrganisationsJordanMiddle EastNews
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