Jordan receives second payment of EU loan

AMMAN — The European Union has disbursed 80 million euros (around JD64.2 million) to the Kingdom in the form of a loan as the second part of a 180 million euro (JD144.4 million) assistance programme for the country, an EU statement said on Monday.

Jordan received the first 100 million euros (around JD80.3 million) on February 10.

The loan, which is part of a Macro-Financial Assistance (MFA) programme for Jordan that was adopted by the EU Parliament and Council of Ministers in December 2013, is a form of assistance that comes in addition to other forms of support such as EU cooperation in national reform efforts in areas such as energy policy, employment and private sector development, the statement said.

The MFA programme is a crisis response instrument complementary to assistance provided by the International Monetary Fund that is given to countries experiencing severe balance of payment problems, according to the statement. 

In regards to Jordan, the MFA programme intends to strengthen the Kingdom’s “foreign exchange reserve position and alleviate its balance of payments and budgetary needs stemming from negative shocks caused by regional instability, including the interruption of gas supplies from Egypt and the Syrian crisis”, the statement said.

The programme also seeks to support national reforms aimed at strengthening public finance management and the tax system, increasing social inclusiveness, improving the Kingdom’s investment climate, enhancing energy efficiency, and promoting economic integration with the EU. 

Jordan signed the memorandum of understanding with the Loan Facility Agreement in relation to such assistance in Brussels in March 2014.

In addition, the country’s bilateral cooperation with the EU, which includes 110 million euros of financial assistance in 2014 (around JD88.3 million), tackles a broad range of sectors “ranging from public finance management, technical and vocational education and training, to the promotion of sustainable management of energy and natural resources” within the framework of the European Neighbourhood Policy, the statement said. 

Since 2012, the EU has also provided more than 300 million euros (around JD241 million) for humanitarian, development and security needs in relation to the Syrian crisis, which began in 2011.

Furthermore, in February 2015, the European Commission presented the first “comprehensive strategy on tackling the crises in Syria and Iraq, bringing together initiatives which will mobilise 1 billion euros in funding for the next two years”, according to the EU statement.