EU endorses conditional loan to Jordan

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The European Union  on Friday endorsed a decision to provide a conditional loan of 200 million euros  to Jordan, according to a statement of the council of the EU.

The Permanent Representatives Committee, on behalf of the council, endorsed the macro-financial assistance, which will be provided in the form of loans and disbursed in two installments, to support the country’s economic stabilization and a substantive reform agenda.

The loan will be available for two and a half years and have a maximum average maturity of 15 years, the council said.

Taking account of the challenges Jordan faces in hosting more than 1.3 million Syrian refugees, the European Commission will, if appropriate, make a proposal in 2017 to extend and increase the financial assistance, the council added.

The loan will also supplement resources provided by the IMF, which has been discussing with Jordan a new support program.

The assistance, however, will be subject to a memorandum of understanding (MoU) to be agreed by Jordan with the EU Commission.

The MoU will lay down economic policy and financial conditions, focusing on structural reforms and sound public finances, said the council, adding that it will include a time-frame for the fulfillment of those conditions.

A precondition for granting the assistance will be that Jordan “respects effective democratic mechanisms,” including a multiparty parliamentary system.