Germany disburses $100m loan as budget support for Kingdom

AMMAN — Germany on Sunday announced that it delivered a $100-million unconditional loan to Jordan in budget support.

The loan, which was announced by Chancellor Angela Merkel during her visit to Jordan in June 2018, aims to help the Kingdom overcome fiscal challenges, a statement from the German Development Bank (KfW) said.

The assistance, disbursed by KfW on behalf of the German government, would provide concessional funding to reduce public debt and further support the reforms that are being implemented by the government under the International Monetary Fund’s Extended Fund Facility programme, the statement said.

"By disbursing this unconditional loan, the German government is living up to its commitments and recognises the macro-economic and fiscal reform efforts the Jordanian government is undertaking," the statement said, citing recent progress by the government in its reform efforts. 

The loan agreement was signed in October 2018 in Berlin by Minister of Planning and International Cooperation Mary Kawar and KfW in the presence of German Vice Chancellor and Minister of Finance Olaf Scholz.