World Bank mobilizes over $700 million emergency financing package for Ukraine

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WASHINGTON, March 7, 2022—The World Bank’s Board of Directors today approved an additional budget support program for Ukraine, called Ukraine Economic Emergency Recovery Financing – or FREE Ukraine – for $489 million. The Board-approved package consists of an additional loan of $350 million and guarantees of $139 million and also leverages grant financing of $134 million and parallel financing of $100 million. dollars, representing total mobilized support of $723 million. The fast-disbursing aid will help the government provide essential services to Ukrainians, including salaries for hospital workers, pensions for the elderly and social programs for the vulnerable.

The initial support from the World Bank has been increased with guarantees from the Netherlands for 80 million euros (equivalent to 89 million dollars) and from Sweden for 50 million dollars. The World Bank has also set up a Multi-Donor Trust Fund (MDTF) to facilitate the flow of donor grants to Ukraine, with contributions from the UK, Denmark, Latvia, Lithuania and Ukraine. Iceland with $134 million to date. The World Bank is calling for new contributions in the form of grants to the MDTF. Additionally, Japan is tying $100 million in parallel funding to the support package.

Emergency funding package

Source Rising

FREE assistance package for Ukraine (loan + guarantees):

Additional loan

  • Additional IBRD loan of $350 million

Guarantees:

  • Netherlands for 80 million euros (the equivalent of 89 million dollars)
  • Sweden for $50 million

$489 million

Grant Funding:
  • UK pledges $100 million
  • Denmark pledges 20 million euros (equivalent to $22 million)
  • An additional $12 million in combined commitments from Latvia, Lithuania and Iceland
$134 million

Parallel funding

  • Japan provides $100 million in tied parallel financing

$100 million

Total $723 million

Consolidating development support is key to streamlining approval processes and maximizing impact.

“The World Bank Group is taking swift action to support Ukraine and its people in the face of the extreme violence and disruption caused by the Russian invasion,” he added. noted World Bank President David Malpass. “The World Bank Group stands with the people of Ukraine and the region. This is the first of many steps we are taking to help address the significant human and economic impacts of this crisis.

The World Bank Group is preparing a $3 billion support package for Ukraine in the coming months and additional support for neighboring countries hosting Ukrainian refugees. According to the UNHCR, since the start of the invasion, 1.7 million Ukrainians – mainly women, children and the elderly – have fled to neighboring countries. Medium and long-term support will be needed for the provision of public services, both for refugees and host communities, and for refugees’ access to the labor market.

The World Bank’s overall portfolio of projects in Ukraine supports the improvement of basic public services, in areas such as water supply, sanitation, heating, electricity, energy efficiency, roads , social protection, education and health care, as well as private sector development. Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled more than $14 billion in approximately 90 projects and programs.

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