Jordan receives $1.5b in foreign aid by end of June

Ministry of Planning and International Cooperation
Ministry of Planning and International Cooperation. (File photo: Jordan News)
AMMAN — The Ministry of Planning and International Cooperation said that foreign assistance, comprising grants and soft loans, stood at $1.5 billion between January and June this year, according to the Jordan News Agency, Petra.اضافة اعلان

The ministry said that foreign assistance included $187.5 million grants, while $1.1 billion was in the form of soft loans to support the general budget and to finance top priority projects in the social protection, employment, economic development, and infrastructure sectors.

An additional $252.5 million grant targeted the Jordan Response Plan, which caters to tens of thousands of Syrian refugees who sought shelter in the Kingdom after fleeing the civil war in their country.

The ministry is also working to allocate foreign aid to implement top priority development programs and projects in accordance with the set plans and in coordination with all ministries and government institutions.

By the end of July 2022, about 70 percent of the overall foreign aid was allocated to support the implementation of programs and projects outlined in the General Budget Law, while the other programs and projects were implemented by donors under the direct supervision of the ministries and institutions benefiting from these projects.

Ministry data showed that the social protection sector had the lion’s share of foreign aid, accounting for 45.7 percent, followed by the economic development sector with 32.7 percent, the employment sector with 8.7 percent, the infrastructure sector with 7.6 percent, and agriculture and food security with 2.5 percent. The remainder was disbursed to the other sectors.

In a related development, the International Monetary Fund (IMF) transferred $183 million to Jordan following an examination of the Kingdom’s economic situation by the Extended Fund Facility (EFF), a branch of the IMF dealing with countries suffering from payment imbalances. Upon examination, the EFF observed that Jordan had achieved all the goals required for the funds to be transferred, Al-Mamlaka TV reported.

According to the IMF’s monthly payment report on Jordan, 137,240,000 Special Drawing Rights (SDR), or about $183 million, was transferred to the Kingdom at the end of July.

With the most recent transfer, total IMF disbursements to Jordan now amount to $1.356 billion, since the beginning of 2020, including $407 million under the Rapid Financing tool.

The IMF approved a four-year facility program on March 25, 2020, with the planned total disbursements amounting to 926.37 million SDRs, or  about $1.293 billion, equivalent to 270 percent of Jordan’s share in the IMF. This amount was increased on June 30, 2021, to 1,070.47 SDRS (about $1.494 billion), which is equivalent to 312 percent of Jordan’s share in the IMF.

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