World Bank will allocate $2.5 billion in financial assistance to Ukraine
2023.02.25 02:17
World Bank will allocate $2.5 billion in financial assistance to Ukraine
By Tiffany Smith
Budrigannews.com – To support Ukraine’s budget and maintain essential services, the World Bank announced on Friday that the United States Agency for International Development (USAID) would provide $2.5 billion in additional grant financing.
The most recent funding provided by the World Bank’s Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) project brings the total to $20.6 billion. It will enable Kyiv to pay pensions and assist people who have been internally displaced while also supporting salaries in essential government functions and sectors like healthcare and education.
“The world continues to witness the horrific destruction inflicted on the country and its people one year into Russia’s invasion of Ukraine,” stated World Bank Group President David Malpass.
He stated that over 12 million Ukrainians had received $18.5 billion, or a portion of the total funds raised.
The additional funding came a day after U.S. Treasury Secretary Janet Yellen called on the International Monetary Fund to put together a loan program for Ukraine and stated that Washington was preparing an additional $10 billion in economic assistance for Ukraine.
Ukraine is looking for a $15 billion long term IMF bundle.
The PEACE program’s financing, which is facilitated by the World Bank, is designed to reduce corruption risk. After confirming that the funds have been distributed to government employees, pensioners, and other recipients, the World Bank transfers funds to cover Ukraine’s expenditures one month after they are made.
After the World Bank has verified that eligible expenditures have been made, the most recent USAID funds will be sent to the government of Ukraine.
The United States, Great Britain, the Netherlands, Spain, Norway, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, Belgium, and Japan have made commitments and pledges totaling $20.6 billion for emergency financing.
