(Washington) The World Bank announced on Tuesday that it was preparing emergency aid of three billion dollars for Ukraine, of which at least 350 million could be released this week.
Updated yesterday at 5:51 p.m.
“We are preparing a $3 billion support package in the coming months, starting with […] a rapid disbursement of at least $350 million, which will be submitted to the Board of Directors for approval this week,” the institution said in a joint statement with the International Monetary Fund (IMF).
This disbursement will be followed by $200 million “for health and education”, she added.
Ukraine has been facing a Russian invasion since February 24.
“We are deeply shocked and saddened by the devastating human and economic toll of the war in Ukraine”, underline the World Bank and the IMF, which intend to increase “as a matter of urgency” their aid to Kiev.
“People are being killed, injured and forced to flee, and massive damage is being done to the country’s physical infrastructure. We stand with the Ukrainian people through these horrific events,” the Washington institutions added.
The World Bank has specified that its aid package will include “the mobilization of financing from several development partners”.
For its part, the IMF stresses that it will use “its rapid financing instrument” that its board of directors could examine “from next week”.
The Fund also recalls that $2.2 billion will already be available “by the end of June” under another instrument called a “stand-by arrangement”.
This agreement is used to respond “quickly to the external financing needs of countries and to support policies intended to emerge from crisis situations”.
The World Bank and the IMF fear the economic fallout on other countries.
“Commodity prices are pushed up and risk further fueling inflation, which hits the poor hardest,” they note.
“Disruptions in financial markets will continue to worsen if the conflict persists,” they warn.
The sanctions announced in recent days will also have a significant economic impact, finally note the institutions.
IMF Managing Director Kristalina Georgieva announced on Friday that Ukraine had requested emergency financial assistance. She then indicated that the Fund was exploring all possible options for additional support.