World Bank adds $2 billion to funds available for coronavirus response

The World Bank on Tuesday said it had increased to $14 billion the amount of fast-track financing available to members to respond to the global coronavirus pandemic, adding $2 billion to an initial package announced on March 3. The change will give the World Bank’s International Financing Corp a total of $8 billion to support private companies and their employees hurt by economic from the disease, the bank said. It said the bulk of the funding would be used by client financial institutions so they can continue to offer trade financing, working capital and medium-term financing to private firms struggling with disruptions in supply chains.

IFC said the funding would also help existing clients in tourism, manufacturing and other heavily affected sectors keep paying their bills, while aiding the healthcare industry as it races to meet surging demand for services, equipment and drugs. World Bank President David Malpass said the bank was committed to provide a fast and flexible response by developing countries to the rapidly evolving crisis caused by the virus. “It’s essential that we shorten the time to recovery,” Malpass said. “Support operations are already underway, and the expanded funding tools approved today will help sustain economies, companies and jobs.”

More than 187,700 people have been infected by the coronavirus in 162 countries, and 7,495 have died, according to a Reuters tally. Philippe Le Houero, chief executive officer of the IFC, said the institution’s goal was to help clients sustain their operations during the current health emergency phase so they could help economies recover more quickly later. IFC is the largest global development institution focused on the private sector in emerging markets and works with 2,000 business worldwide. In fiscal 2019, it delivered more than $19 billion in long-term financing for developing countries.