$845m of US aid to be transferred to Treasury in November

AMMAN — An agreement to transfer disbursement of US assistance to Jordan’s Treasury is expected to be signed in November, of total worth of $845 million, the Ministry of Planning and International Cooperation said on Wednesday. 

The ministry said that the agreement is part of a five-year US assistance commitment of the period between 2018-2022. 

Earlier this year, the US Congress appropriated $1.65 billion in grants to Jordan as part of the country’s economic assistance programme to Jordan, Al Mamalaka reported. 

In February of 2018, Jordan and the US signed a MoU under which the US pledged to provide Jordan with $6.375 billion over five years. 

Under the deal, Jordan received $1.275 billion per year from 2018-2022. The memo stipulated that no less than $845.1 million was to be allotted for Treasury support by November, and another $425 million was to be allocated for military assistance.  

Minister of Planning and International Cooperation Nasser Shraideh said in a previous statement that the goal of the US assistance is to support Jordan's development and reform efforts amid challenges related to the COVID-19 pandemic and the hosting of Syrian refugees. 

In September, the two countries signed a new memo providing the Kingdom with a total $10.15 billion to be distributed over a seven-year period. The aid will be dispersed in annual average increments of $1.45 billion beginning next year, marking a $175 million increase in annual aid.

Under the previous memo, a total of $1,275 billion was offered in assistance. 

The annual assistance package allocates at least $1.035 billion for economic aid, including $610 million in direct assistance to the Treasury. The stimulus support fund, which supports Jordan’s economic modernisation and public sector reform processes, will be allotted $75 million annually under the deal.  

The memo also directs $350 million towards joint USAID-governmental priority development projects, in addition to some $400 million in annual military aid. 

Shraideh highlighted that the new memo increases support to Jordan by 38 per cent compared with the previous period. He also noted that this increase demonstrates the sustained commitment of Jordanian-US cooperation, and reflects the US government's belief in the Kingdom's efforts to realise comprehensive reform.