The OPEC Fund for International Development (OFID) has signed a $70.5 million loan agreement with Jordan to help mitigating the socio-economic impact of the COVID-19 pandemic, according to an announcement the fund released.<\/p>\n
The agreement will provide social safety net programmes and stimulus packages to retain workers across various economic sectors and create new jobs.<\/p>\n
The announcement said the loan will specifically support the creation of about 14,500 jobs in the forestry and tourism sectors.<\/p>\n
The loan will also held employing fresh graduates in the information and communication technology sector and strengthening the staffing of various healthcare institutions.<\/p>\n
OFID\u2019s Director-General Abdulhamid Alkhalifa said, \u201cAs Jordan recovers from disruptions related to Covid-19, creating employment opportunities for youth remains especially critical.\u201d<\/p>\n
\u201cThe OPEC Fund is pleased to partner with the Jordanian government and the World Bank to support job creation in key sectors and to help increase economic resilience,\u201d he said.<\/p>\n
This loan is part of the OFID\u2019s $1 billion commitment to collective and coordinated COVID-19-related assistance for developing countries worldwide.<\/p>\n
OFID has committed more than $322 million, in addition to this loan, to support public, private and trade finance operations that are helping strengthen Jordan\u2019s energy, health, education and agriculture sectors.<\/p>\n
The fund was established in January 1976 by the then 13 member countries of OPEC to be a channel of aid to developing countries.<\/p>\n
In 2020, Jordanian public debt surged by 10.6% to 26.50 billion dinars ($37.4 billion).<\/p>\n
The rise is due to the government\u2019s heavy spending to support its economy during the COVID-19 pandemic.<\/p>\n
According to data of the Ministry of Finance, Jordan\u2019s public debt ended 2020 at 85.4% of GDP, up from 75.8% a year earlier.<\/p>\n
The Hashemite Kingdom\u2019s internal debt was 12.78 billion dinars last year, while external debt stood at 13.72 billion dinars, Ministry of Finance data show.<\/p>\n
Unemployment rose to 25% in the fourth quarter of 2020, with youth unemployment reaching 55%, according to International Monetary Fund data.<\/p>\n