Jordan’s financial engagement with World Bank under COVID-19 response program reaches USD882.87 million

(MENAFN) By the end of August, Jordan’s financial engagement with the World bank under the COVID-19 response program reached an impressive USD882.87 million. This initiative is designed to provide crucial cash assistance to low-income and vulnerable families and workers who have been adversely affected by the pandemic.

Recent data reveals that Jordan has utilized 87 percent of the total funding allocated to this program, which amounts to approximately USD 1.014 billion. This leaves a remaining balance of around USD 131 million from the total loan amount allocated. According to the agreement between the World Bank and the Jordanian government, signed in 2020, the repayment of this loan is set to commence in 2026. The repayment will be made in two annual installments until 2040.

The World Bank has also announced a restructuring of the program, extending its duration by an additional year. The new end date is now set for December 2025, instead of the original December 2024. This extension is aimed at improving the program’s effectiveness in meeting the needs of those impacted by the pandemic.

Originally, the World Bank's objective, established at the end of June 2020, was to provide financial support to poor and vulnerable families and workers in Jordan who were struggling due to the coronavirus pandemic. The upcoming restructuring is set to significantly broaden the program’s reach. Under the revised plan, the number of families receiving cash support will increase from 432,000 to 452,000, and the number of individuals benefiting from this assistance will rise from 1.76 million to approximately 2 million.

Additionally, the restructuring is expected to enhance the Takaful program, increasing the number of households receiving cash transfers from 234,000 to 254,000. The number of individuals benefiting from this program will also increase from 1.24 million to 1.34 million. The program will also add 190,000 new eligible households to the Takaful 1 program by 2024.

A report released on September 13 outlines that the World Bank’s agreement with Jordan includes plans to use USD 63.42 million of unspent funds to expand the consolidated cash transfer program in 2024. This expansion aims to support an additional 20,000 vulnerable households. Of these, 15,000 new households will be selected from the Takaful/Cash Transfer waiting list, focusing on the most impoverished individuals. The remaining 5,000 families will be moved from the old NAF case list to the Takaful/Cash Transfers program (CCS), with these beneficiaries expected to be incorporated into the program by the end of September.

Initially, when the National Aid Fund’s program was approved in mid-2020, the World Bank provided a loan of USD 374 million. In July 2021, additional financing of USD290 million was approved, bringing the total program value to $664 million. Further, in March 2022, an additional USD 350 million in financing was approved, raising the total funding to nearly USD 1 billion.

This significant financial commitment from the World Bank underscores Jordan’s ongoing efforts to support its most vulnerable populations during the pandemic and highlights the evolving nature of international aid and financial support programs.

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