8 Aug 2022 21:02

U.S. allocates $4.5 bln grant to Ukraine via World Bank, $3 bln of it to be disbursed in Aug

MOSCOW. Aug 9 (Interfax) - The World Bank (WB) on Monday, August 8, announced its decision to grant a $4.5 billion aid package to Ukraine for "urgent needs."

"The United States, through the U.S. Agency for International Development (USAID) in coordination with the U.S. Department of the Treasury, is providing an additional $4.5 billion in direct budgetary support to the government of Ukraine to help alleviate the acute budget deficit," the Ukrainian media said, citing a USAID press release circulated on Monday evening.

The Ukrainian government will receive the funding in tranches, beginning with a $3 billion disbursement in August, it said.

In particular, the resources provided today will enable the Ukrainian government to carry out core functions at the national and regional levels.

For example, these funds will allow the Ukrainian government 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 crisis.

"Ukraine needs continued government services, including health, education, and social protection to prevent further deterioration in living conditions and poverty," World Bank Group President David Malpass said.

Malpass thanked the United States for its ongoing support through the World Bank's 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 (IPF), approved in June 2022, the bank said. To date, the World Bank has mobilized 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 crisis. More than $6.3 billion of this financing has been disbursed as of the end of July 2022.