The International Monetary Fund and World Bank are working on a multi-billion support package for Ukraine, with the first $US550 million ($758 million) set to be approved within days.
“We are deeply shocked and saddened by the devastating human and economic toll brought by the war in Ukraine,” IMF managing director Kristalina Georgieva and World Bank president David Malpass said.
“Our institutions are working together to support Ukraine on the financing and policy fronts and are urgently increasing that support. We have been in daily contact with the authorities on crisis measures.”
The joint statement on Wednesday morning (AEST) comes after urgent requests from the Ukrainian government for financial and military support, with Australia contributing $70 million to purchase weapons.
Money will be supplied through the IMF’s Rapid Financing Instrument, which provides member countries with funding in emergencies. The fund’s board could approve that disbursement as soon as next week.
That would come on top of $2.2 billion still available between now and the end of June under Ukraine’s pre-war 2020 Stand-By Arrangement program to improve the country’s macroeconomic and financial stability.
The World Bank is also preparing a $US3 billion package for the coming months, with a fast-disbursing budget support operation for at least $US350 million that will be submitted for board for approval this week, followed by $US200 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,” Ms Georgieva and Mr Malpass said.
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