AMMAN, June 28 (Xinhua) -- The World Bank (WB) will extend a loan of 500 million U.S. dollars to support Jordan's ongoing reforms in improving economy, according to a WB statement on Thursday.
The First Equitable Growth and Job Creation Development Policy Loan (DPL) aims to support Jordan to promote economic growth, help small and medium enterprises (SMEs) access to finance more easily, create more jobs, in particular for young people and women.
The financing will also expand social safety nets to protect the poorest against economic shocks, as well as expand the National Aid Fund programme to cover an additional 85,000 households, the WB indicated.
The 500-million-dollar DPL consists of a grant of 111 million dollars from the Global Concessional Financing Facility (GCFF) and a non-concessional portion of 389 million dollars, with fixed rate and a final maturity of 35 years.
The loan comes after Jordan witnessed nationwide protests recently after the government embarked on fiscal reforms to reduce public debt. Several countries and allies also pledged to provide aid to the country.
"The World Bank reiterates its unwavering commitment to support Jordan at this critical juncture," Saroj Kumar Jha, World Bank Mashreq regional director, said in the statement.
Launched in 2016, the GCFF provides concessional financing to middle income countries hosting large numbers of refugees, at rates usually reserved for the poorest countries.
The program brings the World Bank Group's total commitment to Jordan to 1.3 billion dollars.
