World Bank offers $500 million to support Jordan


Published: 2018-06-28 18:02

Last Updated: 2018-06-29 11:04

World Bank Group offers a US $500 million to boost Jordan’s economy
World Bank Group offers a US $500 million to boost Jordan’s economy
Roya News Source

The World Bank Group (WBG) stated that an amount of US $500 million to help Jordan’s economic status, US $111 million of which is a grant provided the Global Concessional Financing Facility, while the rest (US $389 million) is a loan due over a period of 35 Years with a grace period of 54 months.

In its statement published on Thursday June 28, 2018, WBG explained that their support is targeted to serving the kingdom’s economic development, creating flexible and integrated labor markets, and expanding the National Aid Fund cash transfer program – which covers an additional 85,000 households in Jordan.

The WBG’s First Equitable Growth program along with the Job Creation Development Policy Loan (DPL) will be working on protecting those who are most affected by the economic crisis. Plans include boosting extra social safety nets, creating more job opportunities for youth, and improving the scope of financing small and medium enterprises (SMEs).

World Bank Mashreq Regional Director, Saroj Kumar Jha, stated that “the World Bank reiterates its unwavering commitment to support Jordan at this critical juncture …. The new Jordanian government has the opportunity of a fresh start to build consensus for reforms based on a broad consultative approach. We look forward to supporting Jordan’s efforts to unlock the potential of its human capital, increase its competitiveness, kick-start growth and boost job creation."

Within the business field, the program aims to assist small and medium businesses in executing efficient plans that will help them reduce their expenditures, boost their productivity and improve their market shares, which will accordingly result in more employment opportunities and allow those who are unemployed to benefit from entities offering social support.

World Bank Lead Economist and Co-Task Team Leader, Christos Kostopoulos, commented on the same subject saying that "The broad set of actions stipulated by this program will set the foundations for higher growth and employment in Jordan. In particular, flexible and part-time work opportunities are expected to promote a higher labor participation rate among women and youth, thus increasing their economic empowerment."

This recent amount of US $500 million, makes Jordan's commitments to WBG a US $1.3 billion in total, of which US $1.1 billion is loan-based.