WB·IMF to Provide Billions of Dollars in Aid to Ukraine... $350 Million Initial Support Next Week

World Bank to Provide $3 Billion Support with $350 Million Priority Funding... IMF Also Preparing $2.2 Billion Support by End of June

David Malpass, President of the World Bank
[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 1st (local time) that the World Bank is proceeding with procedures to expedite the approval of a $350 million (approximately 421.8 billion KRW) loan promised to Ukraine.

A source said that the World Bank Board of Directors is preparing to review the loan by the end of this week. Another source predicted that loan approval could be possible within a few days, and disbursement might occur as early as next week.

David Malpass, President of the World Bank, said when he met Ukrainian President Volodymyr Zelensky in Munich, Germany, on the 19th of last month that preparations were underway to disburse $350 million by the end of March, with additional financial support to follow. According to sources, due to the urgent situation in Ukraine, the timing of the World Bank’s $350 million disbursement is expected to be accelerated by about one to two weeks. The World Bank plans to first provide $350 million and then support $3 billion over the coming months.

In a joint statement released on the 1st with the International Monetary Fund (IMF), the World Bank announced that it is preparing financial support totaling $3 billion over the next few months, starting with at least $350 million in budget support to be submitted to the board this week.

Sources reported that the $350 million support received strong backing from 25 executive directors, with only Russia opposing.

With this additional $350 million loan support, the total financial aid the World Bank has provided to Ukraine over the past year will exceed $1.5 billion. The World Bank has been providing financial support to Ukraine for COVID-19 response, vaccine distribution, power grid improvements, and education. Since the full-scale spread of COVID-19 in 2020, the World Bank has supported Ukraine with a total of $2.3 billion. Ukraine joined the World Bank in 1992, and the total support since joining approaches $14 billion.

Ukraine has also requested financial support from the International Monetary Fund (IMF). IMF Managing Director Kristalina Georgieva stated on the 25th of last month that Ukraine had requested financial assistance from the IMF and that the IMF is reviewing all options.

In a joint statement on the 1st, the IMF said that a rapid support procedure will be discussed by the board as early as next week, and that it is preparing additional support amounting to $2.2 billion by the end of June.

Our institutions are cooperating to support Ukraine in fiscal and policy aspects and are urgently increasing support.

This content was produced with the assistance of AI translation services.