“The World Bank Grants $300 Million to Expand Support for Impoverished Lebanese Families in Response to Economic Crisis and COVID-19”

2023-05-26 06:41:39

The World Bank: $300 million to expand support for poor Lebanese families

The Board of Executive Directors of the World Bank Group approved an additional financing of $300 million for the emergency project to support the social safety net in response to the crisis and the COVID-19 pandemic in Lebanon.

The World Bank stated, in a statement, that “this additional financing will allow the continuation and expansion of the provision of cash transfers to the poor and most needy Lebanese families, as well as support the development of a unified social safety net system that enables better response to current and future shocks.”

This new $300 million package represents the second additional financing for the Social Safety Net Project ($246 million) that was approved in January 2021 to support Lebanon in facing the effects of the economic crisis and the COVID-19 pandemic on the poor and most needy population, and has previously benefited. The project will receive additional first financing of $4 million in May 2022.

Lebanon has been going through an economic and financial crisis for more than 3 years, which is among the worst crises the world has witnessed. The overall contraction of 39.9% in real GDP since 2018 has squandered 15 years of economic growth.

This crisis continues to severely affect the social level and impede citizens’ access to basic public services. The World Bank said that with the sharp deterioration in the currency, inflation that has reached hundreds of digits, the increase in food insecurity and the rise in food prices, the living conditions of the neediest and poorest families continue to deteriorate.

“The additional financing will enable the Lebanese government to continue supporting the growing needs of the poorest and most vulnerable families who are under pressure due to the severe economic and financial crisis,” said Jean-Christophe Carré, Regional Director for the Middle East at the World Bank. “This financing will also facilitate the linking of existing social safety net programs into the program Unified in line with the government’s vision contained in the National Strategy for Social Protection, which will ensure simplification of implementation mechanisms, reduce fragmentation and duplication, and enhance the efficiency and effectiveness of spending on social safety nets.

Overall, this project and additional financing will provide cash transfers to 160,000 households for a period of 24 months. This includes families currently benefiting from the project, as well as new families who meet the program’s criteria. Beneficiary families will receive a fixed amount of $25 per month, in addition to $20 for each family member (up to 6 members), i.e. a maximum of $145 per family per month.

Lebanon is still unable to obtain cash support from international donors that directly reach the state, in light of the failure of Lebanese officials to implement the reforms required of them, which are conditional on providing assistance with the aim of recovering from the economic crisis, which has not yet enabled it to complete a final agreement. with the International Monetary Fund.

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