World Bank approves $723m emergency financing package for Ukraine

The World Bank says it has approved a $723 million package of loans and grants for Ukraine as the country battles Russia’s invading forces.

In a statement on Monday, the Bretton Woods institution said the approval was given by its board of executive directors.

The bank said the funds would help Ukraine’s government provide critical services, including wages for hospital workers, pensions for the elderly and social programmes for the vulnerable.

The package includes a $350 million loan, augmented by about $139 million through guarantees from the Netherlands and Sweden.

It is also made up of $134 million in grants from Britain, Denmark, Latvia, Lithuania and Iceland, as well as $100 million of financing from Japan.

“The World Bank Board of Executive Directors today approved a supplemental budget support package for Ukraine, called Financing of Recovery from Economic Emergency in Ukraine – or FREE Ukraine – for $489 million,” the statement reads.

“The package approved by the Board consists of a supplemental loan for $350 million and guarantees in the amount of $139 million and is also mobilizing grant financing of $134 million and parallel financing of $100 million, resulting in total mobilized support of $723 million.

“The initial World Bank support was increased with guarantees from the Netherlands for 80 million euros ($89 million equivalent) and Sweden for $50 million.

“The World Bank has also set up a multi-donor trust fund (MDTF) to facilitate channelling grant resources from donors to Ukraine, with contributions from the UK, Denmark, Latvia, Lithuania, and Iceland in the amount of $134 million thus far.

“The World Bank is calling for further grant contributions to the MDTF. In addition, Japan is linking $100 million in parallel financing to the support package.”

David Malpass, World Bank president, said, “The World Bank Group is taking quick action to support Ukraine and its people in the face of the violence and extreme disruption caused by the Russian invasion.

“The World Bank Group stands with the people of Ukraine and the region. This is the first of many steps we are taking to help address the far-reaching human and economic impacts of this crisis.”

The bank had said it is preparing a $3 billion package of support for Ukraine in the coming months and additional support to neighbouring countries receiving Ukrainian refugees.