An announcement has been made by the International Monetary Fund and World Bank Group of their response to Ukraine’s request for urgent financing with about $5.2bn cumulatively.
They made the disclosure in a joint release titled, ‘Joint IMF-World Bank Group statement on the war in Ukraine’ published on the IMF website on Thursday.
According to the IMF, $2.2bn will be available to Ukraine between now and the end of June. The World Bank added that it would approve about $350m this week, followed by $200m for health and education.
They said, “Our institutions are working together to support Ukraine on the financing and policy fronts and are urgently increasing that support. We have been in daily contact with the authorities on crisis measures.
“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.
‘’ In addition, we continue to work on Ukraine’s Stand-By Arrangement programme, under which an additional $2.2bn is available between now and the end of June.
“At the World Bank Group, we are preparing a $3bn package of support in the coming months, starting with a fast-disbursing budget support operation for at least $350m that will be submitted to the Board for approval this week, followed by $200m in fast-disbursing support for health and education.
“This package will include the mobilization of financing from several development partners, and we welcome the already-announced support from many bilateral partners.”
They both added that they were working together to assess the economic and financial impact of the conflict and refugees on other countries in the region and the world.
Furthermore, they said the war is creating significant spillovers to other countries as commodity prices are being driven higher amidst rising concern of increasing inflation levels.
The IMF and World Bank added that disruptions in financial markets would continue to worsen if the conflict lingers.
