The International Monetary Fund (IMF) and World Bank have jointly pledged financial and policy support for Ukraine as invasion by Russia enters the seventh day.
In a statement jointly issued by Kristalina Georgieva, the IMF managing director, and David Malpass, World Bank Group president, the two lenders said they are deeply shocked and saddened by the devastating human and economic toll brought by the war in Ukraine.
This comes as Russian invasion on Ukraine continues without any sign of easing, even though discussions between the two countries have commenced.
“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,” the two global lenders announced.
“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 program, under which an additional $2.2 billion is available between now and the end of June.
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“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.
“This package will include the mobilization of financing from several development partners,” they stated, welcoming the already-announced support from many bilateral partners.
The two institutions further announced that they 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 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.”
The IMF and World Bank are further concerned that the war is also creating significant spillovers to other countries, particularly on commodity prices, which are now being driven higher and risk further fueling inflation, which hits the poor the hardest.
According to them, disruptions in financial markets will continue to worsen should the conflict persist.
Also the sanctions announced over the last few days will have a significant economic impact, they said as they continue to assess the situation and discuss appropriate policy responses with their other international partners.
“We stand ready to provide enhanced policy, technical, and financial support to neighboring countries as needed,” they pledged, noting that coordinated 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.”
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