LEBANON — The World Bank’s Board of Executive Directors has approved $350 million in new financing intended to support Lebanon’s ongoing socio-economic recovery and help vulnerable populations severely affected by years of crisis. 

The financing, announced on January 27, is split into two loans to address both immediate social needs and long-term public-sector needs as the country continues to deal with the repercussions of its deep economic collapse that began in 2019. 

World Bank officials described Lebanon’s recovery as “fragile” and stressed that the new funding package aims to provide broad, high-impact benefits across society.

According to Jean-Christophe Carret, Division Director for the Middle East Department, the financing will strengthen social protection systems.

It will also support economic inclusion and accelerate the digital transformation of government services.

Under the package’s first component, $200 million will be allocated to the Social Safety Net Strengthening and Building Systems Project (ESSN).

This project builds on ongoing World Bank efforts to improve Lebanon’s social protection framework, including improvements to the DAEM platform, which is used for cash transfer programs targeting poor and vulnerable households. 

The remaining $150 million will fund the Digital Acceleration Project, which focuses on enhancing access to essential public services through digital platforms, improving the digital environment for businesses, and expanding government capabilities in data management and cybersecurity. 

Both loans still require approval by Lebanon’s Cabinet and Parliament. The World Bank’s move comes amid wider economic challenges for the country, including stalled reforms and urgent calls for fiscal stability from international partners.