The country’s partners have already pledged around $15 billion in financial aid in a move to support Ukraine’s economy and army amid a military conflict with Russia. Funds include loans and grants from the U.S., Canada, Japan, France, Sweden and other countries. Last month, the EU proposed a 1.2 billion euro financial aid package to Kyiv to mitigate the effects of the conflict with Moscow. Washington boosted its support by offering a sovereign loan guarantee of up to $1 billion to support Ukraine’s economic reform agenda.
EIB approves financial support in amount of 668 mln euros to Ukraine
A house in Vasylkiv (Ukraine) damaged by the rocket fire launched by Russian army (Alamy)
The European Investment Bank (EIB) has approved direct financial support to Ukraine in the amount of 668 million euros, becoming one more financial institution supporting the country amid Russia’s aggression.
Russia launched its long-feared attack on Ukraine, striking major cities and strategic sites over a wide geographical area in an operation described by Kremlin leader Vladimir Putin as a swoop to “demilitarise and denazify” but not to occupy its ex-Soviet neighbour.
The financial support is part of the EIB Ukraine Solidarity Urgent Response programme.
“This initial support package will help the Ukrainian government meet the most pressing financial needs, including the purchase of food, medical supplies, and fuel for citizens,” the EIB said in a statement.
The bank said that immediate support would be available in the next couple of days. The EIB will allocate funds available under two EIB loans, which were initially provided to support SMEs and the agricultural sector in Ukraine.
The World Bank is preparing a $3 billion aid package for Ukraine in the coming months, while the International Monetary Fund (IMF) is expected to decide on emergency financing of up to $1.4 billion.
“Our institutions are working together to support Ukraine on the fronts of finance and policy and are urgently increasing their support,” the institutions said in a joint statement.
The IMF said it was responding to a request from Ukraine for emergency funding. Under the Rapid Financing Instrument (RFI), Ukraine can receive up to $1.4 billion, 50 percent of the IMF quota.
“In addition, we continue to work on the Ukrainian Stand-By Arrangement program, according to which an additional $2.2B will be available from now until the end of June,” the Fund said.
The World Bank Group prepares a $3 billion package of support in the coming months, starting with a fast-disbursing budget support operation for at least $350 million that will be submitted to the Board for approval this week, followed by $200 million in fast-disbursing support for health and education.
“This package will include the mobilisation of financing from several development partners and we welcome the already-announced support from many bilateral partners,” they said.
The World Bank and the IMF are also working together to assess the economic and financial impact of the conflict and refugees on other countries in the region and the world.
“We stand ready to provide enhanced policy, technical, and financial support to neighbouring countries as needed. Coordinated international action will be crucial to mitigate risks and navigate the treacherous period ahead. This crisis affects the lives and livelihoods of people around the world, and we offer them our full support,” the statement says.
In November 2021, the International Monetary Fund, following the first review of the SBA programme, agreed on the allocation of a loan tranche to Ukraine in the amount of about $700 million.
Mar 8, 2022