German support for rock of stability in Middle East

• EUR 86 million untied line of credit for reforms in Kingdom of Jordan
• German-Jordanian intergovernmental negotiations: EUR 237 million for schools, water and Syrian refugees

On behalf of the German Federal Ministry of Finance (BMF), KfW today signed an agreement with the Kingdom of Jordan for an untied financial loan of EUR 86 million. The funds are to be used to support a broad-based structural reform agenda to increase economic and employment growth. Chancellor Merkel had committed to the untied financial loan during a visit to Jordan in June 2018. In providing these funds, Germany is assisting Jordan with the reform efforts required by the International Monetary Fund (IMF) to stabilise the country’s overall economic situation.

“We have a longstanding trusting relationship with Jordan – the trust placed in our Jordanian partners’ reform efforts is underlined by the Federal Government’s commitment to this untied financial loan to complement the IMF measures,” says Prof. Joachim Nagel, member of the Executive Board of KfW Group.

During the German-Jordanian intergovernmental negotiations, the Federal Ministry for Economic Cooperation and Development (BMZ) agreed to another EUR 237 million. KfW will use these BMZ funds to support water/sanitation, education, energy and pro-employment programmes. Stabilisation and conflict prevention measures in the context of refugees – for instance, in Zaatari Refugee Camp – are an integral part of these sectoral approaches.

The current Financial Cooperation portfolio with Jordan amounts to around EUR 850 million. The first agreement between the Hashemite Kingdom and Germany dates all the way back to 1961.

More information on KfW Development Bank is available at: www.kfw-entwicklungsbank.de/International-financing/KfW-Entwicklungsbank/