Japan Provides $110 Mln Support Loan to Jorda

Japan has announced a substantial financial package for Jordan, providing a concessional loan and grant amounting to $106 million.

This initiative aims to bolster the country's budget and support its ongoing economic reform program.

The announcement comes as Japanese Foreign Minister Hayashi Yoshimasa, pays a visit to the Kingdom, during which he met with his Jordanian counterpart, Ayman Safadi, as well as Minister of Planning and International Cooperation, Zeina Touqan, at the headquarters of the Jordanian Ministry of Foreign Affairs in Amman.

The Japanese Embassy in Amman issued a statement revealing that "the Government of Japan has decided to offer a concessional loan to support the budget under the title of the 'Electricity Sector Reform and Resilience Program,' valued at 15 billion Japanese yen, equivalent to around $100 million US dollars, to aid the Jordanian government's reform program in line with its vision for economic revitalization."

Furthermore, the statement mentioned, "Yoshimasa and Touqan also signed and exchanged memorandum of grant assistance valued at 897 million Japanese yen, roughly equivalent to $6.5 million US dollars, in support of the 'Energy System Capacity Enhancement Project.'"

According to the statement, "The objective of this new assistance grant is to enhance the operation of the energy system by replacing current outdated protection stages with high-performance digital protection stages in key substation points, ultimately ensuring stable and reliable electricity supply in Jordan."

During a joint press conference, Safadi expressed his gratitude for the "generous support" provided by Japan to refugees and the aid directed towards the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).

Jordan faces a challenging economic situation with an unemployment rate of 22.6% as of 2022, according to the International Monetary Fund.

This percentage is even higher among the youth, reaching approximately 50%.

The country's public debt has surpassed 100% of its gross domestic product (GDP), exceeding $50 billion