October 1 2022 8:32 AM E-paper Subscribe Sign in My Account Sign out

AIIB injects $250m to Jordan to address pandemic unemployment

AIIB
(Photo: Jordan News)
AMMAN — The Asian Infrastructure Investment Bank’s (AIIB) board of directors has approved a $250-million investment in Jordan to accelerate economic recovery from the COVID-19 pandemic, according to the Jordan News Agency, Petra.اضافة اعلان

In a statement released Wednesday, the bank said that its first loan to Jordan is expected to create more jobs by capitalizing on the economy’s potential, especially its green growth opportunities.

According to recent national statistics, Jordan’s real GDP contracted by around 1.6 percent in 2020 due to the pandemic. Unemployment soared to 24.7 percent and poverty increased by an estimated 40 percent in the earliest stage of the health crisis.

Totaling $1.2 billion and co-financed with the World Bank, the Inclusive, Transparent, and Climate Responsive Investments Program-for-Results (PforR) project supports Jordan’s ongoing reforms initiated under the Five-Year Reform Matrix.

The reforms are aimed at strengthening systems to deliver well-targeted public investments, including public-private partnerships and addressing major challenges to the country’s competitiveness. In both cases, the program supports the greening of investments.

"Investing in green infrastructure creates jobs and economic value," said Konstantin Limitovskiy, AIIB vice president of investment operations.

"Jordan has been one of the most active countries in the region in adopting international climate change initiatives, including the Paris Agreement. Our support will assist the government’s drive toward a greener, more climate responsive and more competitive economy."

In August, AIIB held a high-level roundtable with Jordanian public and private sector officials to discuss investment strategies to support the growth of the country’s transport sector.

The discussion was part of the AIIB’s ongoing engagement with its non-regional members in the Middle East and North Africa region as it prepares for its annual meeting in October hosted by the United Arab Emirates, Petra reported.


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