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World Bank approves $290m to support vulnerable households in Jordan

A general view of the World Bank headquarters, in Washington DC, on November 17, 2020. The bank on Monday announced it had approved additional funding to support low-income households in Jordan. (Phot
A general view of the World Bank headquarters, in Washington DC, on November 17, 2020. The bank on Monday announced it had approved additional funding to support low-income households in Jordan. (Photo: Reuters)
AMMAN — The World Bank on Monday released a statement saying it has approved an additional $290 million in financing to support low-income and vulnerable households in Jordan.اضافة اعلان

The additional funds are for the Emergency Cash Transfer COVID-19 Response Project to provide cash support households and workers affected by the economic impact of COVID-19, the statement added.

“The World Bank will continue its support to Jordanians through the crisis,” s. “This financing will expand cash transfers to more households, including female-headed households, and pay part of the salaries of formal sector workers in businesses that are struggling to stay open and keep paying their staff as a result of the pandemic,” said Saroj Kumar Jha, the World Bank’s Mashreq regional director.

This new financing will scale up cash transfers to poor and near-poor households affected by the pandemic and provide wage subsidies for workers in some of the most affected firms, according to the statement.

The financing is part of the $1.1 billion recently announced as a combination of loans and grants by the World Bank and its international partners to support Jordan in responding to the pandemic and promoting an early, climate-resilient, and inclusive recovery. 

Although Jordan’s economy is beginning to recover, the shock caused by the pandemic continues to be felt through job losses and reduced earnings, the statement said. Households relying on informal work have been the most affected, with many of them pushed into poverty.

"The Government of Jordan is carrying out large social protection programs to reduce the impact the COVID-19 crisis is having on the most vulnerable Jordanians,” said Nasser Shraideh, minister of planning and international cooperation. “This additional financing will strengthen the support we provide through the National Aid Fund and the Social Security Corporation in cash transfers, unemployment benefits, and wage subsidies.”

The financing will also extend the duration of benefits being made under the “Takaful-3” program to 160,000 of the households of informal workers for a year, provide wage subsidies for 100,000 formal sector workers for 13 months under the “Istidama” program, and support cash transfers to 85,000 low-income households under the regular “Takaful-1” cash transfer program.

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