The World Bank on Monday approved a $723 million package of loans and grants for Ukraine, providing desperately needed government budget support as the country battles a Russian invasion.
The international lenders' support package includes a $350 million loan supplement to a prior World Bank loan, augmented by about $139 million through guarantees from the Netherlands and Sweden, the bank said in a statement.
It also approved a supplemental budget support package for Ukraine, called Financing of Recovery from Economic Emergency in Ukraine - or FREE Ukraine - for USD 489 million, the bank said in a statement.
The support package also includes $134 million in grants from Britain, Denmark, Latvia, Lithuania, and Iceland as part of a trust fund that will continue to take in grant contributions on Ukraine's behalf. Japan is providing parallel financing of $100 million.
A World Bank spokesperson said the funds are expected to be transferred to Ukraine's government in the next few days.
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The World Bank's budget support loans typically do not carry restrictions on how the funds can be spent, but the bank said the "fast-disbursing" support will help Ukraine's government provide critical services, pay hospital workers, fund pensions and continue social programs.
"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," World Bank President David Malpass said in a statement.
"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 said it was continuing to work on another $3 billion packages of support for Ukraine in the coming months and additional support for neighboring countries that are taking in Ukrainian refugees, now exceeding 1.7 million, mostly women, children, and the elderly. Source: MSN