The World Bank on Monday (7/3) finally approved the granting of a US$723 million loan and grant package to Ukraine. These funds are expected to help Ukraine to face the Russian invasion.
The package consists of a basic World Bank loan of US$ 350 million plus guarantees from the Netherlands and Sweden of US$ 139 million.
Ukraine will also receive a US$ 134 million grant from the UK, Denmark, Latvia, Lithuania and Iceland. The funds are provided by countries as part of a trust fund that will continue to receive grant contributions on behalf of Ukraine.
Meanwhile, Japan is also willing to provide parallel financing of US$ 100 million.
A World Bank spokesman said the funds were expected to be transferred to the Ukrainian government in the next few days.
The World Bank said support for the rapid disbursement program would help the Ukrainian government provide essential public services, such as paying hospital workers, funding pensions and continuing other social programs.
In a statement, World Bank President David Malpass said the bank would commit to taking swift action to help the Ukrainian people face the extreme violence and disturbance caused by the Russian invasion.
"The World Bank Group supports the people of Ukraine and the region. This is the first of many steps we are taking to help address the broad economic and humanitarian impact of this crisis," said Malpass.
After this, the World Bank will focus on completing another support program for Ukraine with a value of up to US$ 3 billion. The program is expected to be completed in the next few months.
Countries currently hosting Ukrainian refugees will also receive more attention from the World Bank. There are an estimated 1.7 million refugees, mostly women, children and the elderly, scattered across a number of neighboring Ukraine.
