Brussels, 18 March 2014
EU/Jordan: €180 million Macro-Financial Assistance package signed
Today, Olli Rehn, Vice-President of the European Commission responsible for Economic and Monetary Affairs and the Euro, signed, on behalf of the European Union, a €180 million Macro-Financial Assistance (MFA) package for Jordan, together with a Memorandum of Understanding and Loan Facility Agreement with Jordan. The agreement was co-signed by the Jordanian Minister of Finance, Dr Umayya Toukan, and by the Governor of the Central Bank of Jordan, Dr. Ziad Fariz.
“The EU is helping Jordan to weather the severe impact of the regional economic and political crisis. We support the continuous efforts towards macroeconomic stabilisation,” said Vice President Rehn. “This assistance will help ease Jordan’s financing constraints and support its economic reforms, for the sake of improving the living conditions of the Jordanian people.”
The financial assistance, in the form of a medium-term loan, will be provided during the course of this year in two instalments: €100 and €80 million. This assistance is part of the EU's comprehensive efforts to help Jordan address the consequences of a number of external economic shocks, notably related to the conflict in Syria and the disruption in gas imports from Egypt. These factors have influenced the build-up of significant imbalances regarding Jordan's balance of payments and fiscal situation.
The assistance complements the increased financial resources provided by the EU to Jordan under the European Neighbourhood and Partnership Instrument, the EU SPRING programme to support partnership, reforms and inclusive growth in the EU's southern neighbourhood, as well as humanitarian and other forms of assistance. The MFA is linked to a three-year economic adjustment and reform programme agreed between Jordan and the IMF in 2012 and to a number of economic policy conditions as set out in the Memorandum of Understanding.
Background on Macro-Financial Assistance
Macro-Financial Assistance is an exceptional EU crisis response instrument available to the EU's neighbouring partner countries. This operation is complementary to assistance provided by the IMF. MFA loans are financed through EU borrowing on capital markets. The funds are then on-lent with similar financial terms to the beneficiary countries.
The assistance package for Jordan was proposed by the European Commission on 29 April 2013 and adopted by the European Parliament and the Council on 11 December 2013 (Decision 1351/2013/EU).
For more information on past MFA operations please see: