The World Bank has approved a $723 million grant package for Ukraine, which would help the country’s government budget while it fights a Russian invasion.
The World Bank Board of Executive Directors authorized a supplemental budget support package for Ukraine, termed Financing of Recovery from Economic Emergency in Ukraine for $489 million, according to a statement posted on its website.
Fast-disbursing support, according to the bank, will assist the government in providing important services to Ukrainian citizens, such as wages for hospital employees, pensions for the aged, and social programs for the vulnerable.
What the World Bank is saying
World Bank President David Malpass said in a statement that “The World Bank Board of Executive Directors today approved a supplemental budget support package for Ukraine, called Financing of Recovery from Economic Emergency in Ukraine – or FREE Ukraine – for $489 million”
The bank added that “the package approved by the Board consists of a supplemental loan for $350 million and guarantees in the amount of $139 million and is also mobilizing grant financing of $134 million and parallel financing of $100 million, resulting in total mobilized support of $723 million.”
The World Bank was attentive to the urgency of the situation and stated that it is taking quick action to support Ukraine and its people in the face of the violence and extreme disruption caused by the Russian invasion.
The World Bank is also prepping a package to provide support to countries on the Ukrainian border that have taken in refugees amid the ongoing conflict.
It stated, “The World Bank Group is preparing a $3 billion package of support for Ukraine in the coming months and additional support to neighboring countries receiving Ukrainian refugees,” the Bank said. “According to UNHCR, since the onset of the invasion, 1.7 million Ukrainians – primarily women, children, and elderly – have fled to neighboring countries. Medium and long-term support will be needed for the provision of public services, both for refugee and host communities, and labor market access for refugees.”
What you should know
- The International Monetary Fund (IMF) and the World Bank had earlier agreed to provide Ukraine with over $5 billion in response to the country’s request for emergency financing.
- The International Monetary Fund’s Ukraine Stand-By Arrangement program will disburse $2.2 billion, while the World Bank Group is drafting a $3 billion aid package.