Economy and finance
Jordan: Council agrees to €200m in loans
The EU assistance will support the country's economic stabilisation and a substantive reform agenda, helping to cover its balance of payments needs. It will supplement resources provided by the IMF, which has been discussing with Jordan a new support programme.
Agreement was reached with the European Parliament at an informal meeting on 27 October 2016. The Parliament is now expected to approve the decision at first reading. The Council will then adopt the text, as agreed.
The assistance 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 loans will have a maximum average maturity of 15 years.
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 assistance will be subject to a memorandum of understanding (MOU), to be agreed by Jordan with the Commission. 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.
A precondition for granting the assistance will be that Jordan respects effective democratic mechanisms, including a multi-party parliamentary system. It must also 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.