World Bank mobilises $4.5bn in additional financing for vital support to Ukraine

The World Bank Group has said that it has mobilised $4.5 billion in additional financing for Ukraine under the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) Project, which aims to help the Government of Ukraine meet urgent needs created by the ongoing war. The financing package is comprised of a $4.5 billion grant provided by the United States. The additional financing will contribute to sustaining the government’s administrative and service delivery capacity to exercise core functions at the national and regional levels. Specifically, the project will help the Government of Ukraine to cover social payments, healthcare services, and pensions, which are essential for the well-being of the country’s citizens in mitigating the social and economic impacts of the war.

“Ukraine needs continued government services, including health, education, and social protection to prevent further deterioration in living conditions and poverty,” said David Malpass, World Bank Group President. “We are grateful to the United States and our partners for their ongoing support through our rapid support mechanisms and for the generous grant that will greatly support the Ukrainian people.” The additional financing adds to the $1.49 billion investment project financing, approved in June 2022. To date, the World Bank has mobilised nearly $13 billion in emergency financing, including commitments and pledges from donors, to support the continuation of essential government services and to help blunt the widespread human and economic impacts of the war. More than $6.3 billion of this financing has been disbursed as of the end of July 2022.

“There is an enormous need for resources to sustain the daily delivery of essential services, as well as for reconstruction,” said Arup Banerji, World Bank Regional Country Director for Eastern Europe. “As such, our development partners have come together, each bringing to the table their respective areas of strength. As the focus turns to recovery and reconstruction, it will also be critical to increase attention to reforms, transparency, and governance, as Ukraine prepares for a transition to post-war recovery. Supporting the continuation of essential social services will support a more successful and less costly recovery and reconstruction.