EU offers Jordan soft loan worth 200m euros

AMMAN — The EU has provided Jordan with a financial assistance of 200 million euros as a soft loan in the form of macro financial assistance, Planning and International Cooperation Minister Imad Fakhoury announced on Monday.

Finance Minister Omar Malhas, Central Bank of Jordan Governor Ziad Fariz and EU Commissioner of Economic and Financial Affairs, Taxation and Customs Pierre Moscovici signed the related memorandum of understanding and soft loan agreement, Fakhoury said in a ministry statement.

The financial assistance comes in fulfilment of the EU’s pledges made at the Supporting Syria and the Region conference that was held in London last year, the minister noted.

Fakhoury said that the sum would be transferred to the Treasury in two halves, the first of which is due before the end of 2017, and the other next year.

The funds will be used to cover the financing gap through providing direct support to the Treasury within the EU's tool for financial cooperation at the macro level, he added.

The due date for repaying the loan can reach up to 17 years, the minister noted, adding that such loans can contribute to lowering interest rates of internal and external lending, increasing grace periods and extending the repaying time, a matter that helps in restructuring the public debt in line with the national economic and financial reform programme.

In 2015, Jordan received the first soft loan of macro financial assistance that amounted to 180 million euros, and was disbursed in two instalments of 80 and 100 million euros, the statement noted.