The European Commission has adopted today a proposal for a new Macro-Financial Assistance (MFA) operation to Jordan, worth up to €500 million.  This is a milestone for our long-standing relationship with Jordan as it delivers on the commitments outlined in the Strategic and Comprehensive Partnership approved earlier this year. This funding will support the country’s external financing needs, contributing to ongoing fiscal consolidation, and sustaining the implementation of structural reforms. In doing so, the EU seeks to help Jordan advance its reform agenda, fostering employment, economic growth, and investment.

Today’s proposal will complement the fourth MFA programme to Jordan, approved by the European Parliament and the Council in April 2025, amounting to €500 million to be disbursed over 2025-2027. Together, these two operations bring the total MFA support to Jordan to €1 billion. Past MFA programmes to Jordan, amounting to a total of €1.08 billion since 2014, have helped the country in the context of the COVID-19 pandemic and supported overall macroeconomic stability, becoming a key driver of the implementation of transformative reforms in the country.

The assistance will be provided as long-term loans on concessional terms. The new MFA operation foresees three disbursements, each tied to the implementation of agreed policy commitments. The commitments under the new MFA will be outlined in a Memorandum of Understanding between the EU and Jordan. These will be aligned with the reform priorities set out in the Memorandum of Understanding of the ongoing fourth MFA which is expected to be signed soon. Both MFA programmes will be disbursed in parallel. Disbursements will also require positive assessments under Jordan’s IMF-supported programme, as well as continuous adherence to effective democratic mechanisms, the rule of law, and respect for human rights. The policy conditions are expected to focus on areas such as public finance management and tax administration, labour market and social policies, anti-corruption and broader governance reforms, as well as energy and business environment related measures.