EU issues Jordan with €80m loan for debt and budget help

7 Aug 15

Jordan is expected to use the €80m loan received from the European Commission to help pay off international debts and fix its budgetary problems. 

The country faces gas shortages and lacks foreign investments, while citizens are battling humanitarian and security problems caused by the Egyptian and the Syrian crises.

The commission said the loan, which comes under its Macro-Financial Assistance (MFA) programme, will support reforms intended to boost public finance management and the tax system. It is hoped that the reforms will improve the investment climate, enhance energy efficiency, and improve economic integration.

Pierre Moscovici, EU commissioner responsible for economic and financial affairs, taxation and customs, said the commission was committed to helping the Jordanian people cope with the knock-on effects of the situation in the wider Middle East.

“Today’s decision is a further concrete sign of our solidarity. We are living up to our promise to support Jordan's economic reforms to boost growth and job creation,” he said.

The €80m loan is the second and final tranche of a €180m MFA programme for Jordan, which was agreed by the European Parliament and the EU Council of Ministers on 18 December 2013.

The first disbursement under this programme, amounting to €100m, was given to Jordan on 10 February 2015.

  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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