World Bank President David Malpass!
The World Bank is preparing a $ 1.5 billion support package for war - torn Ukraine and plans to aid developing countries struggling to keep up with surging food and energy prices, World Bank President David Malpass said on Tuesday.
Malpass, speaking in Warsaw, said the package was enabled by Monday's approval of $ 1 billion in International Development Association (IDA) aid by donor and recipient countries as well as a $ 100 million IDA payment to neighboring Moldova.
In remarks on the Warsaw College of Economics in Poland, Malpass stated the financial institution was serving to Ukraine present vital providers, together with paying wages for hospital staff, pensions and social packages. Russia invaded Ukraine in February.
"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 times comes," Malpass said.
A World Bank spokesperson said that in addition to the $ 1 billion in funding from IDA's 19th replenishment round, the bank's main concessional lending arm, the International Bank for Reconstruction and Development (IBRD) would provide $ 472 million in loan guarantees.
The plan still needs full approval by the bank's board of directors in the coming weeks, the spokesperson said, adding that the aid would allow Ukraine to continue "essential government services during the war."
The World Bank on Sunday forecast that the war would slash Ukraine's economic output this year by 45%, as half of the country's businesses are closed, maritime experts are cut off and much productive capacity is destroyed.
The aid comes on top of about $923 million in fast - disbursing financing approved by the World Bank last month, which also includes donor country contributions. Malpass said the World Bank was in close contact with Ukrainian authorities to provide support and was working to assist Ukrainian refugees and the country hosting them.
He said the World Bank was 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 spike in food prices needs immediate attention, with Malpass adding that for every one percentage point increase in food prices, 10 million people are expected to fall into extreme poverty.
"The rich can afford suddenly expensive staples, but the poor cannot. Malnutrition is expected to grow, and its effects will be the hardest to reverse in Children," Malpass said.
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