IMF, World Bank set to support Ukraine with total of $5.2 bln amid Russian invasion

Doaa A.Moneim , Wednesday 2 Mar 2022

The International Monetary Fund (IMF) and the World Bank (WB) are set to allocate finances for Ukraine to support it amid the Russian invasion it is undergoing, according to a joint statement released on Tuesday by IMF Managing Director Kristalina Georgieva and WB President David Malpass.

Ukrainian emergency service personnel carry a body of a victim out of the damaged City Hall building following shelling in Kharkiv, Ukraine, Tuesday, March 1, 2022. AP

On the IMF’s side, the fund continues to work on Ukraine’s Stand-By Arrangement Programme, which is expected to disburse an extra $2.2 billion to Ukraine between now and the end of June, according to the statement.

Meanwhile, the WB is preparing a package of support in the coming months worth $3 billion, which consists of a fast-disbursing budget support operation for a minimum of $350 million that will be submitted to the bank’s board for approval during the current week.

This will be followed by a sum of $200 million that will be extended as a fast-disbursing support for health and education in Ukraine.

“The WB’s package will include the mobilisation of financing from several development partners, and we welcome the already-announced support from many bilateral partners,” the statement mentioned.

The two sides also announced that they are working together to evaluate the economic and financial impact of the Russian war on Ukraine and the refugee crisis it is exacerbating.

“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.”

“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 war is also creating significant spill overs to other countries,” the statement further noted.

“Commodity prices are being driven higher and risk further fuelling 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. We are assessing the situation and discussing appropriate policy responses with our international partners.”

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