The country’s partners have already pledged over $5 billion in financial aid in a move to support Ukraine’s economy and reform agenda amid anticipation of a military conflict with Russia. Funds include loans and grants from the U.S., Canada, Japan, France, Sweden and other countries. Last month, the EU proposed a 1.2 billion euro financial aid package to Kyiv to mitigate the effects of the conflict with Moscow. Washington boosted its support by offering a sovereign loan guarantee of up to $1 billion to support Ukraine’s economic reform agenda.
IMF to disburse $2.2 bln in financial assistance to Ukraine, World Bank mulls $3 bln package
Protest against the Russian invasion of Ukraine (Alamy)
The International Monetary Fund (IMF) is ready to provide $2.2 billion in financial assistance to Ukraine, while the World Bank considers a $3 billion financial package amid military conflict in the country.
Russia launched its long-feared attack on Ukraine, striking major cities and strategic sites over a wide geographical area in an operation described by Kremlin leader Vladimir Putin as a swoop to “demilitarise and denazify” but not to occupy its ex-Soviet neighbour.
“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 damage is caused to the country’s physical infrastructure. We stand with the Ukrainian people
through these horrifying developments,” the IMF Managing Director Kristalina Georgieva and World Bank Group President David Malpass said in a joint statement.
“Our institutions are working together to support Ukraine on the financing and policy fronts and are urgently increasing that support.”
The IMF will consider emergency financing through the Rapid Financing Instrument next week. In addition, the Fund continues 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.
The World Bank Group prepares 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.
“This package will include the mobilisation of financing from several development partners and we welcome the already-announced support from many bilateral partners,” they said.
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 neighbouring 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,” the statement says.
In November 2021, the International Monetary Fund, following the first review of the SBA programme, agreed on the allocation of a loan tranche to Ukraine in the amount of about $700 million.
Mar 4, 2022