BRUSSELS, Jan 20 (KUNA) -- The Council of the European Union approved on Tuesday the provision of additional macro-financial assistance to Jordan amounting to EUR 500 million in the form of loans, in support of the Kingdom's economic stability and its reform programme amid mounting internal and external challenges.
In a press release, the Council said the European assistance aims to strengthen economic stability in Jordan and support its efforts to restore a sustainable external financing position, thereby contributing to its economic and social development.
It added that the assistance, which came in response to a request submitted by the Jordanian government in January 2025, will be provided in the form of long-term loans to be disbursed in three instalments.
The Council noted that the assistance approved today is conditional on the signing of a memorandum of understanding between Jordan and the European Commission, with the disbursement of each loan instalment linked to Jordan's progress in implementing the reforms agreed upon in the memorandum. It also stressed the need for Jordan to adhere to democratic mechanisms and the rule of law throughout the duration of the programme.
Jordan continues to face economic challenges, including high unemployment rates, a persistent external current account deficit, and rising public debt, which reached 90.4 percent of gross domestic product in 2024. Regional instability in the Middle East has also contributed to increased pressure on Jordan's public finances and trade balance.
The statement pointed out that since 2013, the European Union has provided Jordan with a total of EUR 1.08 billion under three previous macro-financial assistance programmes, while a fourth programme worth EUR 500 million is currently being implemented. These programmes support key reforms in public finance management, social policy, labour market policies, and governance. (end) arn.hb