In a statement jointly issued by Kristalina Georgieva, the
IMF managing director, and David Malpass, World Bank Group president, the two
lenders said they are deeply shocked and saddened by the devastating human and
economic toll brought by the war in Ukraine.
This comes as Russian invasion on Ukraine continues without
any sign of easing, even though discussions between the two countries have
commenced.
“Our institutions are working together to support Ukraine on
the financing and policy fronts and are urgently increasing that support. We
have been in daily contact with the authorities on crisis measures,” the two
global lenders announced.
“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.
“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.
“This package will include the mobilization of financing
from several development partners,” they stated, welcoming the already-announced
support from many bilateral partners.
The two institutions further announced that they are also
working together to assess the economic and financial impact of the conflict
and refugees on other countries in the region and the world.
“We are deeply shocked and saddened by the devastating human
and economic toll brought by the war in Ukraine. People are being killed,
injured, and forced to flee, and massive damage is caused to the country’s
physical infrastructure. We stand with the Ukrainian people through these
horrifying developments.”
The IMF and World Bank are further concerned that the war is
also creating significant spillovers to other countries, particularly on
commodity prices, which are now being driven higher and risk further fueling
inflation, which hits the poor the hardest.
According to them, disruptions in financial markets will
continue to worsen should the conflict persist.
Also the sanctions announced over the last few days will
have a significant economic impact, they said as they continue to assess the
situation and discuss appropriate policy responses with their other
international partners.
“We stand ready to provide enhanced policy, technical, and
financial support to neighboring countries as needed,” they pledged, noting
that 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.”
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