The World Bank stated on Tuesday that it is putting together a $3 billion aid package for war-torn Ukraine. It also includes at least $350 million in emergency funds.
The first tranche will be submitted to the Board for approval this week. Then, the $200 million in fast-disbursing support for health and education will follow. World Bank President David Malpass and IMF Managing Director Kristalina Georgieva said in a joint statement.
The IMF and the World Bank have both guaranteed and are currently giving further funding to Ukraine. They are moving quickly to put this strategy into action.
The IMF will assess the government’s newest request for emergency finance “as early as next week,” according to a statement. The IMF has a $2.2 billion financing contract with the country that runs until June.
Significant economic impact
The leaders of the world’s crisis lenders condemned Russia’s assault on its neighbor and the economic and social damage it is creating.
“We are deeply shocked and saddened by the devastating human and economic toll brought by the war in Ukraine,” they said. Thereby, noting the “significant spillovers to other countries” including higher commodity prices that “risk further fueling inflation.”
Likewise, economic sanctions on Russia “will also have a significant economic impact.”
Members of the Group of Seven met with central bankers early Tuesday. They agreed to gain support for Kyiv while exploring further measures to isolate Moscow.
Oil prices climbed to above $106 a barrel on Tuesday as violence worsened and hundreds of thousands of refugees fled Ukraine.
The proposal would increase World Bank assistance to Ukraine to over USD 1.5 billion in the last year. It includes loans for Covid-19 response and vaccinations, power grid upgrades, and education.
Since the start of the Covid-19 pandemic in early 2020, the World Bank has lent Ukraine USD 2.3 billion. It brings the total amount lent to Ukraine to approximately USD 14 billion since the country joined the organization in 1992.
