Merkel pledges $100 million loan for troubled Jordanian economy

  • 6/22/2018
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Merkel visited Jordan amid an escalating domestic row over migration The chancellor said Germany will provide the $100 million loan in addition to bilateral aid which amounts to about 384 million euros ($442 million) this year. AMMAN: German Chancellor Angela Merkel on Thursday promised a $100 million loan to troubled Jordan, where mass protests over austerity measures forced the prime minister to resign earlier this month. Merkel visited the kingdom amid an escalating domestic row over migration. Standing next to Jordan’s King Abdullah II, she made no reference to the crisis that’s straining her ruling coalition. The chancellor said Germany will provide the $100 million loan in addition to bilateral aid which amounts to about 384 million euros ($442 million) this year. She said she hopes the additional funds will help Jordan carry out economic reforms sought by the International Monetary Fund. The IMF is seeking such reforms to lower Jordan’s public debt-to-GDP ratio, which has risen to about 96 percent, in part because of the continued economic fallout from Syria’s civil war and other regional crises. “We are aware of the challenges you face, both in the realm of security and in civil society development,” Merkel said, adding that she wished the government success in implementing “needed reforms.” “The IMF, and it’s known for this, often has very ambitious ideas about reforms, and implementing them is anything but simple,” she said. Merkel is meanwhile facing a serious crisis in her coalition. Bavaria’s Christian Social Union party demands that some migrants should be turned back at Germany’s borders, and has given her two weeks to reach agreement with European partners. Interior Minister Horst Seehofer, the CSU’s leader, is threatening to go ahead unilaterally with his plans if she doesn’t — potentially threatening the governing coalition. Leaders from a group of European Union countries, led by Germany and France, will meet Sunday to thrash out possible solutions.

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