Russia-Ukraine war: World Bank approves $723 million package of loans and grants for Kyiv

Amid all-out conflict between Moscow and Kyiv, the World Bank on Monday approved a $723 million package of loans and grants for Ukraine, providing government budget support. According to a statement, the World Bank approved a supplemental budget support package of $489 million for Kyiv, called Financing of Recovery from Economic Emergency in Ukraine or FREE Ukraine. The bank said that the fast-disbursing support will help the government provide critical services to Ukrainian people, including wages for hospital workers, pensions for the elderly and social programs for the vulnerable. 

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

Further, the international lender informed that the initial World Bank support was increased with guarantees from the Netherlands for 80 million euros ($89 million equivalent) and Sweden for $50 million. Moreover, the 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. Now, the World Bank is calling for further grant contributions to the MDTF. 

World Bank President speaks with UN Secy-General on Ukraine crisis 

Meanwhile, the President of the World Bank David Malpass spoke to UN Secretary-General Antonio Guterres on Tuesday on the “tragedy” unfolding in Ukraine, human and economic impacts of the crisis and the coordinated efforts. Malpass said that he welcomed Guterres’ support for the World bank response in Ukraine and neighbour countries, refugee efforts and food insecurity. 

It is pertinent to mention here that so far, Moscow has been claiming that it has been targeting military and strategically important points. Russian President Vladimir Putin has repeatedly blamed the war on Ukraine’s leadership and criticised their resistance to the invasion. However, asserting that he is “not scared of anyone,” Ukrainian President Volodymyr Zelenskyy on the 12th day of Russia’s aggression said that he is staying in Kyiv. 

"I am staying in Kyiv.  On Bankova.  Not hiding.  And I'm not afraid of anyone.  As much as it takes to win this war!" he was quoted as saying. He also added that victory against the Russian forces would "definitely be achieved." 

(Image: AP)