Ukraine Crisis: World Bank To Offer $3 Bn Support Package, Says Commodity Prices & Inflation To Rise

The World Bank will submit a fast-disbursing budget support operation for at least $350 million to the Board for approval this week, followed by $200 million for health and education.

Ukrainians Flee To Hungary Amid Russia's Armed Invasion | People receive food after arriving at the West Train Station from Zahony after border crossing at Zahony-Csap as they flee Ukraine on March 01, 2022 in Budapest, Hungary. (Getty)

New Delhi: With the conflict between Russia and Ukraine worsening, the World Bank is preparing a $3 billion support package for the country amid a developing humanitarian crisis in Ukraine in the coming months.

In fact, the International Monetary Fund (IMF) is also considering requests for emergency financing, according to the news agency ANI.

In a joint IMF-World Bank Group statement, World Bank Group president David Malpass and IMF managing director Kristalina Georgieva announced the support package for Ukraine.

What is the financial assistance extended to Ukraine?

“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 statement added.

IMF is also gearing up to offer assistance for the war-hit Ukraine.

“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,” read the statement.

It also mentioned that the “war is also creating significant spillovers to other countries.” The statement indicated the impact on Commodity prices and inflation.

“Commodity prices are being driven higher and risk further fueling 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. We are assessing the situation and discussing appropriate policy responses with our international partners,” the statement added.

In such a situation, IMF-World Bank Group are working together to support Ukraine on the financing and policy fronts and are urgently increasing that support.

The World Bank and IMF are also trying to gauge 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 neighboring countries as needed. 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,” the statement added.