Jordan secures 700-mln-euro soft loan from EU

Jordan on Sunday signed a soft loan agreement with the European Union (EU) under which the kingdom will receive 700 million euros (813.93 million U.S. dollars).

The financing program by the EU will be disbursed to Jordan in three batches starting from October, the Ministry of Planning and International Cooperation said in a statement Sunday.

Jordanian Minister of Planning and International Cooperation Wissam Rabadi said the loan would be provided with a competitive interest rate and a long repayment period of an average of 15 years.

He stressed that the concessional loan would support a range of reforms adopted by Jordan in priority areas, such as enhancing public finances, developing the electronic billing system, and increasing transparency and efficiency of public investment projects.

Initially, the EU agreed to afford Jordan a 500-mln-euro soft loan in 2020. However, the amount was increased by 200 million euros in May in response to the COVID-19 pandemic.