The World Bank has disclosed that it is preparing a $3 billion aid package for Ukraine in the face of Russia’s invasion.
According to the bank, the funding would start with a fast-disbursing budget injection of at least $350 million this week, followed by $200 million for health and education.
This was made known by David Malpass, World Bank President and Kristalina Georgieva, managing director of the International Monetary Fund (IMF) in a joint statement on Tuesday.
“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,” the statement reads.
“This package will include the mobilization of financing from several development partners, and we welcome the already-announced support from many bilateral partners.
Meanwhile, they said the IMF board would consider Ukraine’s request for emergency financing by next week.
“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,” the statement adds.
“In addition, we continue to work on Ukraine’s Stand-By Arrangement program, under which an additional $2.2 billion is available between now and the end of June.”
The Bretton Woods institutions said due to the war, 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 sanctions announced over the last few days will also have a significant economic impact,” they added.
The global lenders said they were urgently increasing financing and policy support for Ukraine and had been in daily contact with the authorities on crisis measures.
They said they were also collaborating 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,” the Bretton Wood institutions said.
“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.”