World Bank approves $700 million support package for Ukraine

This was informed at the official website of the World Bank.

The World Bank Board of Executive Directors today approved a $489 million package of additional budgetary support for Ukraine called "Ukraine Economic Recovery Funding" or "Free Ukraine".

 The package approved by the Board consists of a $350 million additional loan and $139 million guarantees, as well as a $134 million grant funding mobilization and $100 million parallel funding, bringing the total support mobilized to $723 million.

 This will help the government provide critical services to Ukrainian citizens, such as wages for hospital workers, pensions for the elderly, and social programs for the vulnerable.

 Initially the World Bank support was boosted by guarantees from the Netherlands by €80 million (equivalent to $89 million) and Sweden by $50 million.

The World Bank has also established a Multi-Donor Trust Fund (MDTF) to facilitate the transfer of grant resources from donors to Ukraine with contributions from the UK, Denmark, Latvia, Lithuania and Iceland in the amount of $134 million. The World Bank is calling for additional contributions to the MDTF. In addition, Japan is tying $100 million in parallel funding to the support package.

 “The World Bank is taking swift action to support Ukraine and its people in the face of the violence and extreme chaos caused by the Russian invasion,” Assured David Malpass, the President of the World Bank. “The World Bank Group stands with the people of Ukraine and its regions. This is the first of many steps that we are taking to help overcome the far-reaching human and economic impacts of this crisis."

In addition, the World Bank is preparing a $3 billion assistance package for Ukraine in the coming months and additional support for neighboring countries hosting Ukrainian refugees.