The accord was signed by Finance Minister Mohammad Abu Hammour, the German ambassador in Amman Ralf Tarraf and a representative for the German Reconstruction Bank (KfW).
The amount will be used to finance the public budget deficit as well as education development projects, including the German-Jordan University, Abu Hammour said.
The signing of the agreement, which involved a 50 percent discount of the original debt, represented "the common desire to boost bilateral ties between the two friendly countries, particularly in the spheres of social and economic development," the minister said.
He pointed out that the Jordanian government was exerting efforts to sign similar debt-for-projects swap agreements with other creditor countries in a bid to tackle the country's growing budget deficit and cut its foreign indebtedness.
Since 1995, ten debt swap agreements were signed between the two countries with Germany writing off a total amount of 234 million euros of the Jordanian debt.
An agreement was signed last month under which Germany extended 100 million euros in economic aid to Jordan.
