US funnels another $4.5 bn to Ukraine through World Bank

AFP , Monday 8 Aug 2022

The World Bank on Monday announced it was mobilizing another $4.5 billion in US-provided financial support for war-torn Ukraine.

World Bank HQ
File Photo: A person walks past the World Bank headquarters in Washington, DC, on January 10, 2022.

 

The funds will help Kyiv pay for services and pensions, the key to easing the economic impacts of the Russian invasion, the bank said in a statement.

"This economic assistance is critical in supporting the Ukrainian people as they defend their democracy against Russia's unprovoked war of aggression," US Treasury Secretary Janet Yellen said in a statement.

The latest tranche of aid, most of which will be disbursed this month, is part of $8.5 billion in total US support "which is helping Ukraine's government keep hospitals, schools, and other critical government services for the people of Ukraine."

The World Bank said the funding goes to the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) project, part of the multi-billion-dollar package to help the country.

"Ukraine needs continued government services, including health, education, and social protection to prevent further deterioration in living conditions and poverty," World Bank President David Malpass said.

The country is currently running a budget deficit that is growing by $5 billion every month, exacerbated by its inability to raise funds or access financing on external markets.

Allies have rushed to pump Ukraine with aid, with the G7 and the European Union also announcing commitments of $29.6 billion in further money for Kyiv.

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