World Bank’s private arm crafts $ 2bn aid package for Ukraine businesses
World Bank Group’s private sector arm is working on a $ 2bn support package for Ukraine to help the war- torn nation’s businesses weather the steep recession expected this year due to Russia’s invasion.
About $ 1bn is to come from the International Finance Corporation ( IFC), as the development institution is known, according to people familiar with the discussions who asked not to be identified. The remaining funds will come from various nations, though those plans still need to be finalised, one of the people said. The plans were in progress before Monday’s missile attacks on Kyiv and other cities.
“IFC is working with development partners on a financing package to address the domestic, regional and global impacts of the war and includes support for agribusiness, food processing, green and affordable housing, and, eventually, rebuilding infrastructure,” a spokesperson for the IFC said. “More details will be announced at an appropriate time.”
The IFC fights global poverty by p romot ing t he growth of the private sector in developing countries. It lent more than $ 30bn in its latest fiscal year, part of almost $ 115bn loaned by the World Bank, whose other arms focus on aid to the world’s poorest countries, global development and risk insurance.
The latest package will join other activities by the IFC
in Ukraine in recent weeks. The development institution last week announced plans to work with the EU and the city council in Lviv, the largest city in western Ukraine, to provide € 25m to help renovate municipal buildings for internally displaced people, creating jobs and driving economic recovery.
The goal is to help Ukraine provide quality temporary accommodation for thousands of people who had to flee the war- affected eastern and southern parts of the country.
The IFC in September also unveiled plans to invest $ 30m in a fund managed by private equity firm Horizon Capital. The money will support tech and export- oriented entrepreneurs in industries including information technology services, e- commerce, consumer and financial technology in Ukraine.
Globally, the IFC launched a $ 6bn financing platform to respond to the global food crisis that has surged since Russia’s invasion of Ukraine.
The IMF and World Bank this week hold their annual meetings in Washington that typically draw thousands of people from member countries and civil society groups.
The IMF board last week approved $ 1.3bn in new emergency financing for Ukraine, while the World Bank overall has mobilised almost $ 13bn in financing for the nation, including pledges from donors.