World Bank announced $2 billion package to support Ukraine’s private sector

Staff Reporter :: 296 Time View :
Update : Friday, December 16, 2022
FILE PHOTO: International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo/File Photo

With the condition contemporary economic,  the World Bank on Thursday announced a $2 billion package to support Ukraine’s private sector, in a bid to help pave the way for reconstruction amid the devastation resulting from Russia’s invasion.

The latest package by the International Finance Corporation (IFC), the bank’s development arm focused on private-sector development in emerging markets, adds to its ongoing support of Ukraine.

The group has been working to help Ukraine maintain trade flows, while retaining access to essential resources like food and fuel, it said. Moscow’s invasion has damaged Ukraine’s infrastructure and disrupted the private sector, which previously contributed up to 70 percent of the country’s gross domestic product, the IFC said in a statement.

Some 11 percent of businesses have shuttered as of September, and more than half operate below capacity, it added, citing the National Bank of Ukraine.

“Many firms are continuing to provide jobs and essential goods and services but need finance to continue operations,” said the IFC.

During the war and early reconstruction stage, the IFC’s new program will focus on ensuring access to critical goods and services, with emergency support for agribusiness and trade finance, including for fuel imports.

“Deploying capital during this extraordinary time is essential to keep businesses and vital services running, and, when the time is right, prepare for the massive reconstruction efforts to come,” said IFC Managing Director Makhtar Diop.

The package includes up to $1 billion from the IFC, with added financing dependent on guarantees from donor governments, it said.

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