AMMAN, June 21 (Xinhua) -- Germany will provide 100 million U.S. dollars in unconditional loan to Jordan, said the visiting German Chancellor Angela Merkel on Thursday.

At a press conference after meeting with Jordanian King Abdullah II at the Royal Palace in capital Amman, Merkel voiced appreciation to Jordan for hosting a large number of Syrian refugees, saying Germany will continue to support Jordan.

"We are aware of the challenges you (Jordan) face, both in the realm of security and in civil society development," she told reporters, hoping that the aid will help Jordan go ahead with needed reforms.

"We will give the government an unconditional loan of 100 million dollars to make the implementation of the IMF reforms a little bit easier," she said.

Under a deal signed between Jordan and the International Monetary Fund (IMF) in 2016, the kingdom needs to rescue public debt to safe levels and take several fiscal reforms. Jordan's public debt takes up 96 percent of gross domestic product currently.

As part of the IMF reforms, Jordan introduced an income tax bill last month, which triggered nationwide protests and resulted in the resignation of former Prime Minister Hani Mulki.

The newly-formed government withdrew the controversial law, but pledged commitment to fiscal reforms as part of the IMF deal.

On the peace process, the two sides stressed the need to implement the two-state solution, which is key to resolving the Palestinian-Israeli conflict.

"There can be no peace or stability in the region without a just and lasting solution that leads to the establishment of an independent Palestinian state with East Jerusalem as its capital. In Jerusalem, Jordan remains committed to upholding its role as well as its responsibility as custodian of Islamic and Christian holy sites," the Jordanian king said.