THE International Monetary Fund (IMF), the World Bank, and a few other partners will raise $5.2 billion to aid Ukraine in its protracted conflict.
Kristalina Georgieva, the Managing Director, and David Malpass, the World Bank Group President, issued a joint statement yesterday empathizing not just with the people of Ukraine, but also with the people of the neighboring countries who are bearing the brunt of the conflict.
“We are deeply shocked and saddened by the devastating human and economic toll brought by the war in Ukraine. People are being killed, injured, and forced to flee, and massive damages are caused to the country’s physical infrastructure.
“We stand with the Ukrainian people through these horrifying developments. The war is also creating significant spillovers to other countries. Commodity prices are being driven higher and risk further fueling inflation, which hits the poor the hardest. Disruptions in financial markets will continue to worsen should the conflict persist.”
The statement noted that various sanctions announced over the last few days will have a significant economic impact, saying, “we are assessing the situation and discussing appropriate policy responses with our international partners.”
The partners revealed that they are collaborating to provide financial and policy support to Ukraine, and that this support is being immediately increased.
The organizations suggested that they have been in daily communication with authorities regarding crisis measures.
On how the fund will be mobilised, the group explained: “At the IMF, we are responding to Ukraine’s request for emergency financing through the Rapid Financing Instrument, which our Board could consider as early as next week. In addition, we continue to work on Ukraine’s Stand-By Arrangement programme, under which an additional $2.2 billion is available between now and the end of June.
“At the World Bank Group, we are preparing a $3 billion package of support in the coming months, starting with a fast-disbursing budget support operation for at least $350 million that will be submitted to the Board for approval this week, followed by $200 million in fast-disbursing support for health and education.”
It also stated that the package will involve the mobilization of funds from a number of development partners, while expressing gratitude for the assistance already shown by numerous bilateral partners.
“The World Bank and the IMF are also working together to assess the economic and financial impact of the conflict and refugees on other countries in the region and the world.
“We stand ready to provide enhanced policy, technical, and financial support to neighboring countries as needed. Coordinated international action will be crucial to mitigate risks and navigate the treacherous period ahead. This crisis affects the lives and livelihoods of people around the world, and we offer them our full support,” it said.
