Brussels: The Council of the European Union has approved the provision of additional macro-financial assistance to Jordan, amounting to EUR 500 million in loans, aimed at supporting the Kingdom's economic stability and reform initiatives amid growing internal and external challenges.
According to Kuwait News Agency, the European assistance is designed to bolster economic stability in Jordan and aid in restoring a sustainable external financing position, thereby advancing the nation's economic and social development. This financial aid is a response to a request submitted by the Jordanian government in January 2025 and will be extended through long-term loans disbursed in three installments.
The Council emphasized that the assistance is contingent upon the signing of a memorandum of understanding between Jordan and the European Commission. The release of each loan installment will be linked to Jordan's progress in executing the reforms outlined in the memorandum. Additionally, the Council underscored the importance of Jordan adhering to democratic mechanisms and the rule of law throughout the programme's duration.
Jordan continues to grapple with economic challenges, including high unemployment rates, a persistent external current account deficit, and escalating public debt, which reached 90.4 percent of the gross domestic product in 2024. Regional instability in the Middle East has further strained Jordan's public finances and trade balance.
The statement highlighted that since 2013, the European Union has extended a total of EUR 1.08 billion to Jordan under three previous macro-financial assistance programmes. A fourth programme, valued at EUR 500 million, is currently underway, supporting pivotal reforms in public finance management, social policy, labor market policies, and governance.