The International Monetary Fund (IMF) and the World Bank Group have thrown their weight behind the people of Ukraine with the provision of at least $3 billion in financial assistance to the country.
IMF managing director, Kristalina Georgieva, and World Bank Group president, David Malpass, said in a joint statement on Monday that the global financial institutions were supporting the people of Ukraine.
“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,” they said.
“The war is also creating significant spill-overs to other countries. 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.”
Malpass and Georgieva said the financial institutions were assessing the situation and discussing appropriate policy responses with their international partners.
“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,” they said.
The IMF was responding to Ukraine’s request for emergency financing through the Rapid Financing Instrument, which the board could consider as early as next week.
“We continue to work on Ukraine’s Stand-By Arrangement programme, under which an additional $2.2 billion is available between now and the end of June.
“At the World Bank Group, we are preparing a $3 billion package of support in the coming months, starting with a fast-disbursing budget support operation for at least $350 million that will be submitted to the Board for approval this week, followed by $200 million in fast-disbursing support for health and education,” the institution’s leaders said.
The package will include the mobilisation of financing from several development partners.
“The World Bank and the IMF are also working together to assess the economic and financial impact of the conflict and refugees on other countries in the region and the world. We stand ready to provide enhanced policy, technical, and financial support to neighbouring countries as needed.
“Co-ordinated 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.”
