new Delhi: With the conflict between Russia and Ukraine worsening, the World Bank is preparing a $3 billion support package for the country in the coming months amid a developing humanitarian crisis in Ukraine.
In fact, the International Monetary Fund (IMF) is also considering requests for emergency financing, according to news agency ANI.
In a joint statement by the IMF-World Bank Group, World Bank Group President David Malpass and IMF Managing Director Kristalina Georgieva announced the aid package for Ukraine.
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What is the financial aid given to Ukraine?
“At the World Bank Group, we are preparing a $3 billion support package over the coming months, beginning with a rapid delivery budget support operation for at least $350 million, to be submitted to the Board for approval this week. This will be followed by $200 million in rapid disbursement assistance for health and education,” the statement added.
The IMF is also gearing up to offer aid to war-torn Ukraine.
“At the IMF, we are responding to Ukraine’s request for emergency financing through the Rapid Financing Instrument, which our Board may consider as early as next week. In addition, we continue to work on Ukraine’s stand-by arrangement program, with an additional $2.2 billion available between now and the end of June.”
It also noted that “the war is causing significant spillover to other countries as well.” The statement indicated the impact on commodity prices and inflation.
“Commodity prices are being pushed higher and further risking inflation, which affects the poorest of the hardest. The disruption in financial markets will continue, should the struggle continue. The restrictions announced in the past few days will also have a significant economic impact. We are assessing the situation and discussing appropriate policy responses with our international partners.”
As such, the IMF-World Bank Group is working together to support Ukraine on funding and policy fronts, and is increasing that support immediately.
The World Bank and the IMF are also trying to assess the economic and financial impact of conflict and refugees in the region and other countries of the world.
“We are ready to provide advanced policy, technical and financial assistance to neighboring countries as needed. Coordinated international action will be critical to mitigating the risks and navigating the treacherous period ahead. This crisis affects the lives and livelihoods of people around the world and we extend our full support to them.”