EU and Jordan take important step towards delivery of €500 million to support Jordan’s macro-financial stability and reforms

This article is brought to you in association with the European Commission.

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.

Ursula von der Leyen, Commission President, said: “Jordan is a strategic partner of the EU and we are investing €500 million in its future. This commitment aligns with Jordan’s reform agenda, driving progress in areas like sustainable finance, green energy, and anti-corruption. By tackling immediate economic needs and fostering long-term prosperity, we are supporting Jordan in building a stable, resilient and inclusive society. Today’s agreementreflects our confidence in Jordan’s ability to navigate regional turbulence, advance reforms that benefit all its citizens and ensure its stability.”

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.

Next Steps

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.

The policy conditionality defined in the Memorandum of Understanding is aligned with the reform agenda of the Jordanian authorities and supports the country’s commitments under its partnership with the EU.

Background

Macro-Financial Assistance operations are part of the EU’s wider engagement with neighbouring countries and are intended as an exceptional EU crisis response instrument. They are available to EU neighbouring countries experiencing severe balance-of-payments problems.

Following Jordan’s request in October 2023 for macro-financial assistance prompted by the worsening of its economic situation amid heightened regional instability due to the outbreak of the war in neighbouring Israel and Gaza, the European Commission proposed, on 8 April 2024, a new MFA operation of up to €500 million to help cover the country’s external financing needs. The Commission proposal was adopted by the European Parliament and the Council in April 2025.

The macro-financial assistance complements the comprehensive economic adjustment and reform programme agreed between the Hashemite Kingdom of Jordan and the IMF in the context of the four-year arrangement under the Extended Fund Facility approved by the IMF in January 2024. The first three IMF programme reviews were successfully completed, triggering disbursements totalling USD 391 million out of the approved USD 1.3 billion. Additionally, on June 2025, the IMF Board approved a new 30-month arrangement under the Resilience and Sustainability Facility with Jordan amounting to about USD 700 million, to support Jordan’s efforts to address longer-term vulnerabilities in the water and electricity sectors and to enhance their ability to address public health emergencies, including future pandemics.