World Bank lines up a $1.5bn support package

The World Bank is preparing a $1.5bn support package for wartorn Ukraine, including a $1bn payment from the development lender’s fund for the poorest countries, World Bank president David Malpass said on Tuesday.

Malpass, speaking in Warsaw, said the package was enabled by Monday’s approval of $1bn in International Development

Association (IDA) aid by donor and recipient countries, as well as a $100m IDA payment to neighbouring Moldova.

In remarks ahead of next week’s World Bank and International Monetary Fund spring meetings, Malpass said the bank’s support is helping Ukraine provide critical services, including paying wages for hospital workers, pensions and social programmes.

“The World Bank was created in 1944 to help Europe rebuild after World War 2.

“As we did then, we will be ready to help Ukraine with reconstruction when the time comes,” Malpass said.

The plan still needs full approval by the World Bank’s board of directors in coming weeks, a World Bank spokesperson said.

Malpass did not specify the source of the additional $500m for Ukraine.

The aid comes on top of about $923m in fast-disbursing financing approved by the World Bank last month.

Malpass said the World Bank is in close contact with Ukrainian authorities to provide support and is working to assist Ukrainian refugees and the countries hosting them.

He said the World Bank is analysing global impacts of the war in Ukraine, including the spike in food and energy prices, and is “preparing a surge crisis response that will provide focused support for developing countries”.

THE AID COMES ON TOP OF $923M IN FAST-DISBURSING FINANCING APPROVED BY THE WORLD BANK