World Bank announces $2.5 billion in additional Ukraine aid

The financing will support salaries in core government functions and sectors such as healthcare and education

Read more...

By Reuters

Published: Fri 24 Feb 2023, 11:49 PM

The World Bank on Friday announced $2.5 billion in additional grant financing from the US Agency for International Development (USAID )to support Ukraine's budget and maintain essential services.

The latest financing under the World Bank's Public Expenditures for Administrative Capacity Endurance in Ukraine(PEACE) project lifts the total to $20.6 billion and will support salaries in core government functions and sectors such as healthcare and education while allowing Kyiv to pay pensions and support internally displaced people.

"One year into Russia’s invasion of Ukraine, the world continues to witness the horrific destruction inflicted on the country and its people,” said World Bank Group President David Malpass.

Advertising
Advertising

He said that $18.5 billion of the total funds mobilised had been disbursed, reaching more than 12 million Ukrainians.

ALSO READ:

The additional funding was announced a day after US Treasury Secretary Janet Yellen said that Washington was preparing an additional $10 billion in economic assistance for Ukraine and called on the International Monetary Fund to pull together a loan programme for Ukraine.

Ukraine is seeking a $15 billion multi-year IMF package.

The World Bank-facilitated financing under the PEACE programme is set up to minimise the risk of corruption. The World Bank transmits funds to cover Ukraine's expenditures a month after they are made, once it has verified that the money has gone to the government employees, pensioners and other recipients.

The latest USAID funds will be transmitted to the government of Ukraine after the World Bank verifies eligible expenditures.

The total of $20.6 billion in emergency financing comes from commitments and pledges from, the United States, Britain, the Netherlands, Spain, Norway, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, Belgium, and Japan.

Reuters

Published: Fri 24 Feb 2023, 11:49 PM

Recommended for you