European Commission and Jordan Sign €500 Million Macro-Financial Assistance Agreement

Strategic Insights -

The European Commission and Jordan have signed a Memorandum of Understanding launching the implementation of €500 million Macro-Financial Assistance (MFA) to Jordan. This agreement is part of a broader EU-Jordan Strategic and Comprehensive Partnership, aiming to support economic stability, growth, and long-term resilience in Jordan. The MFA will help cover part of Jordan's external financing needs and support its economic reforms in areas such as public finance management, governance, and anti-corruption. The agreement reflects the EU's confidence in Jordan's ability to navigate regional turbulence and advance reforms that benefit all its citizens.

Key Takeaways:

  • The European Commission and Jordan have signed a Memorandum of Understanding launching the implementation of €500 million Macro-Financial Assistance (MFA) to Jordan.
  • The MFA is part of a broader EU-Jordan Strategic and Comprehensive Partnership, adopted earlier this year, aiming to support economic stability, growth, and long-term resilience in Jordan.
  • The €500 million MFA will be disbursed over a period of up to two and a half years, subject to the progress on the agreed reform agenda and policy measures outlined in the Memorandum.
  • The agreed reforms aim to strengthen the Jordanian economy in key areas such as public finance management, governance, and anti-corruption, social protection, and labour market policies, green transition, and business environment.
  • Positive assessment and decision to disburse funds will also require continued respect of the political pre-conditions.
  • The disbursement of the first instalment is expected within a month of the signature and is conditional on a positive assessment by the European External Action Service that the political pre-condition is met, and contingent on a positive track record of the ongoing International Monetary Fund (IMF) programme.
  • The disbursement of the second and third instalments will, in addition, depend on the timely and effective implementation of the agreed policy measures.
  • Ursula von der Leyen, Commission President, has stated that Jordan is a strategic partner of the EU and that this commitment aligns with Jordan's reform agenda, driving progress in areas like sustainable finance, green energy, and anti-corruption.
  • The agreement reflects the EU's confidence in Jordan's ability to navigate regional turbulence, advance reforms that benefit all its citizens, and ensure its stability.
  • The total EU support under macro-financial assistance to Jordan would bring it to €1 billion, including the proposed fifth MFA operation of up to €500 million.

Statistics:

  • €500 million: The amount of Macro-Financial Assistance (MFA) signed between the European Commission and Jordan.
  • Up to 2.5 years: The duration of the MFA disbursement.
  • €1 billion: The total EU support under macro-financial assistance to Jordan, including the proposed fifth MFA operation of up to €500 million.
  • USD 391 million: The total amount of IMF disbursements from the four-year arrangement under the Extended Fund Facility approved by the IMF in January 2024.
  • USD 1.3 billion: The total amount of IMF funding approved for Jordan under the Extended Fund Facility.
  • USD 700 million: The amount of new IMF funding approved for Jordan under the Resilience and Sustainability Facility.

Sources:

  • "The European Commission and Jordan sign Memorandum of Understanding launching the implementation of €500 million Macro-Financial Assistance". European Commission. April 2025.
  • "Jordan signs agreement on €500 million Macro-Financial Assistance with EU". Gulf Oil and Gas. 22 April 2025.