The European Commission and Jordan have signed a Memorandum of Understanding launching the implementation of €500 million Macro-Financial Assistance (MFA) to Jordan. This programme is part of a broader EU-Jordan Strategic and Comprehensive Partnership adopted earlier this year, reinforcing our shared efforts to support economic stability, growth, long-term resilience and reforms. The Memorandum of Understanding, signed today by Commissioner Dombrovskis on behalf of the EU, underpins the fourth MFA, approved by the European Parliament and the Council in April 2025. It paves the way to unlocking €500 million, to 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. This will help Jordan cover part of its external financing needs and support its economic reforms.

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. This precedes the recent Commission Proposal for a fifth MFA of an additional loan of up to €500 million, which is subject to approval by the European Parliament and Council and will be complementary to the agreed reform agenda under the fourth MFA. Together, they would bring the total EU support under macro-financial assistance to €1 billion.

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. The European Commission and the European External Action Service will continue to monitor the situation closely in coordination with international partners.