World Bank stands for financial assistance to Ukraine-Budrigantrade Review

Budrigantrade.com - According to people familiar with the plans, the World Bank is attempting to "fast-track" the approval of an additional $350 million loan for Ukraine within the next few days in order to provide emergency funds for the country's efforts to defend itself against Russia's invasion.

According to sources who spoke with Reuters, the expansion of an existing loan would give Ukraine "budget support" without limiting how President Volodymyr Zelenskiy's government could spend it.

The loan could be ready for board consideration as early as the end of this week, according to one source, while another said it was also possible to disburse the money within days of approval.

Despite objections from Russia's executive director, they claimed that the plan has strong support from the 25 members of the World Bank's executive board. The majority of the development lender's voting shares are held by the United States and its Western allies.

Since Russia invaded Ukraine last week, the World Bank has prioritized sending cash to the country quickly via wire transfer. On February 19, World Bank President David Malpass informed Zelenskiy in Munich that other financing projects would follow a $350 million disbursement by the end of March.

A spokesperson for the World Bank refused to provide any specifics about the strategy, but stated: We hope to present a package of fast-disbursing financing for Ukraine to our board for consideration in the coming days."

The sources said that the payment was a "topping up" that would effectively double the $350 million Development Policy Loan that was given to Ukraine on December 17 to support land reforms, access to credit for small farmers, and economic competition reforms.

The arrangement would bring World Bank loaning to Ukraine in the previous year alone to more than $1.5 billion, including advances for Coronavirus reaction and immunizations, power lattice enhancements and training.

According to the sources, it would not increase Ukraine's policy commitments and the bank could move much faster toward board approval by expanding an existing loan rather than starting a new loan process with new program objectives. Bilateral donor nations may contribute some of the money for the supplement.

One source said that the $350 million payment could be delayed if Zelenskiy's government is removed before the transfer is ready because Russia's invasion force in Ukraine is getting bigger.

One of the sources stated, "They will not be disbursed if on the day of the disbursement there are concerns that the funds will be misused." They will not be disbursed until the very last moment unless the bank is certain that the funds will go to the Ukrainian government."

The World Bank has loaned $2.3 billion for budget support, health responses, vaccinations, and investment projects since the beginning of the COVID-19 pandemic in early 2020.