Jordan Gets €500 Million in Loans to Strengthen Its Economy
Published December 16, 2025
Goal: Promote regional stability
The EU Parliament just approved a €500 million loan for Jordan to finish its IMF deal, boost the economy and push reforms, but only if Jordan stays democratic, follows a solid reform plan, and the money is closely monitored and repaid over a long period.
EU Parliament approves €500 million macro‑financial help for Jordan
The European Parliament voted on 16 December 2025 to give Jordan up to €500 million in macro‑financial assistance (MFA).
The money will be lent to Jordan in three instalments over about 2½ years and is aimed at:
- Stabilising Jordan’s economy and finishing the IMF programme (which is worth about US$1.2 billion).
- Supporting Jordan’s reform plans for a stronger public‑finance system, better governance, job creation and social security.
Why Jordan needs help
| Issue | What happened | Impact |
|---|---|---|
| Regional conflict | Syria war, Israel‑Gaza tensions, Red Sea security | Reduced investment, disrupted trade, lower tourism |
| COVID‑19 and price shocks | Global pandemic, high oil prices after Russia’s invasion of Ukraine | Slow recovery, high unemployment (especially for youth and women) |
| Climate risk | Water scarcity | Hinders growth and stresses budgets |
Jordan has made reforms – a new constitution, independent courts and election commission, new laws on elections, political parties, decentralisation and women’s rights – but the economy still faces a high external‑financing gap.
What the EU has already done
| Instrument | Amount (approx.) | Period |
|---|---|---|
| MFA‑I to III | €1.08 billion | 2014‑2023 |
| MFA‑IV (new) | €500 million | 2025‑2027 |
| EU grants (NDICI‑GE) | €360 million | 2021‑2024 |
| Other EU help (investment platform, projects, etc.) | €1.08 billion (projects) + €126 million (leveraged) | 2014‑2020 |
| European Investment Bank loans | €2.4 billion | since 2011 |
| IMF programme | US$1.2 billion | 2024‑2028 |
The new €500 million MFA will add to these funds to fill the remaining balance‑of‑payments gap.
Conditions for the new assistance
- Democracy & human rights – Jordan must keep a functioning parliament, rule of law and respect for human rights.
- Reform agenda – Commit to structural reforms, better public‑finance management and anti‑corruption measures.
- Monitoring – The Commission, the EU’s External Action Service (EEAS) and the IMF will check progress.
- Anti‑fraud safeguards – EU anti‑fraud office (OLAF) and other EU bodies will audit the use of funds.
- Loan terms – Interest rates will be low; Jordan can repay over a long period (up to 35 years) and may have a grace period.
If Jordan’s needs change or it fails to meet the conditions, the Commission can reduce, suspend or cancel the assistance.
How the money will flow
- Borrow – The EU Commission will borrow the money on capital markets or from banks.
- Disburse – Funds will go to the Central Bank of Jordan, then to the Ministry of Finance as needed.
- Installments – Three equal instalments, released every three months after the previous one, subject to meeting the conditions.
The Commission will report every year to the Parliament and the Council on progress and will evaluate the programme after it ends.
Key dates
| Event | Date |
|---|---|
| Decision takes effect | 3 days after publication in the Official Journal |
| First instalment | Soon after the MoU is signed |
| Second instalment | At least 3 months after the first |
| Third instalment | At least 3 months after the second |
| Annual reports | By 30 June each year |
| Final evaluation | 2 years after the programme ends |
Bottom line:
The EU is providing Jordan with €500 million in loans to help the country finish its IMF programme, strengthen its economy, and push forward important reforms. The aid is tied to democratic values, rule of law and solid governance, and it will be closely monitored to ensure it is used effectively.
Licensing: The summaries on this page are available under Creative Commons Attribution 4.0 (CC BY 4.0).
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