Announcement of World Bank Assists Jordan's Emergency Recovery Program on March 22, 1991

F()R IMMkEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO.91/55 Contact: Fawzi Rihane (202) 473 2675 WORLD BANK ASSISTS JORDAN'S EMERGENCY RECOVERY PROGRAM WASHINGTON, March 22, 1991 -- The World Bank has approved a $10 million loan to help cover some of the costs associated with Jordan's incremental needs generated by its returning nationals as a result of the Gulf crisis. The World Bank loan will support core components from the government's emergency response program (ERP) and will help meet immediate and incremental needs in essential infrastructure and social services such as education, health care, water supply and transport. The loan will also assist with efforts to integrate returnees into the economy. The Kingdom of Jordan has been seriously affected by the Gulf crisis and needs substantial levels of quick-disbursing emergency assistance. The costs of the crisis for 1990-91 are estimated at over $3 billion and include losses in remittances, exports, tourism revenues, and transportation receipts. Productive sector output has also declined as a result of lost export markets. The combination of declining production and the influx of returnees (estimated to reach a level as high as 400,000 for the period) is expected to put heavy strains on the labor market. In addition to the World Bank loan, bilateral cofinancing is expected from the governments of Canada ($7.3 million), Luxembourg ($1.3 million), Sweden ($10 million), and Switzerland ($25 million). The World Bank loan is for 17 years, including five year of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. Note: Money figures are expressed in U.S. dollar equivalents.