EU disburses 200m euro to Jordan

As last tranche of in Macro-Financial Assistance

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(Photo: Freepik)
AMMAN — The EU has disbursed 200 million euros to Jordan, marking the final tranche of the 700 million euro Macro-Financial Assistance (MFA) program. اضافة اعلان

The funds are aimed at supporting the implementation of Jordan’s economic reform agenda and assisting in alleviating the impact of the COVID-19 pandemic, reported the Jordan News Agency, Petra.

EU’s ongoing support to JordanWith this disbursement, the EU has provided Jordan with over 1.08 billion euro in MFA program funds since 2013.

The EU delegation in Amman announced the disbursement in a statement on Wednesday.

The EU made the disbursement following a positive assessment of Jordan’s implementation of key structural policy measures outlined in the memorandum of understanding signed between the EU and Jordan in August 2020.

The measures included the installation of small solar energy stations in 4,000 vulnerable households, the rollout of smart water meters, and expanding the National Aid Fund social assistance program ‘Takaful’ to reach around 200,000 households.

Additionally, the measures included increasing labor market participation, strengthening good governance, fighting against corruption, improving public finance management, and procurement.

Pre-conditions for MFAThe statement further noted that Jordan continues to meet the pre-conditions for Macro-Financial Assistance, including respecting effective democratic mechanisms, such as a multi-party parliamentary system, and the rule of law, as well as guaranteeing the respect for human rights.

The Macro-Financial Assistance is an emergency financial tool that aims to stabilize the economies of countries that are geographically, economically, and politically close to the EU during times of crisis. The MFA is complementary to the assistance provided by the International Monetary Fund.

The MFA funds are made available with favorable terms and low-interest rates, but they are conditional on the implementation of specific policy measures agreed upon in the memorandum of understanding.

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