The World Bank will provide $2.5 billion in financial aid to Ukraine

The World Bank will provide $2.5 billion in financial aid to Ukraine

The World Bank will provide $2.5 billion in financial assistance to Ukraine

American dollars – banknotes – illustration photo.

Washington/Kiev – The World Bank (SB) will provide Ukraine with a $2.5 billion grant (over CZK 56 billion) from the US Agency for International Development (USAID). The bank announced this in a press release today. The total aid mediated by the SB thus increased to 20.6 billion dollars.

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The funds are earmarked for salaries in essential government functions and sectors such as health and education, as well as allowing Kyiv to pay pensions and help internally displaced persons.

“One year after Russia's invasion of Ukraine, the world is still witnessing a horrific the destruction that has been caused to this country and its people,” said the bank's president, David Malpass. He said that 18.5 billion dollars were paid out of the total amount of released funds, which reached more than 12 million Ukrainians.

The additional funding was announced a day after US Treasury Secretary Janet Yellen said Washington was preparing another $10 billion in economic aid to Ukraine.

Yellen called on the International Monetary Fund (IMF) to prepare a loan program for Ukraine . The country is seeking a multi-year IMF package of $15 billion.

WB-mediated financing is set up to minimize the risk of corruption. The bank transfers the funds to cover Ukrainian expenses a month after they are incurred, once they verify that the money has been received by civil servants, pensioners and other beneficiaries.

The total amount of $20.6 billion comes from the commitments and promises of the United States, Britain, The Netherlands, Spain, Norway, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, Belgium and Japan.

The World Bank provides financial and technical assistance to developing countries with aiming to reduce poverty and improve living standards worldwide. The supreme body is the Board of Governors.