Ukraine receives $723 million in emergency funding from the World Bank

The World Bank has approved a $723 million funding package for Ukraine, which will aid the government's finances while it confronts a Russian invasion.

According to a statement on the World Bank's website, the Board of Executive Directors approved a $489 million additional budget support package for Ukraine, dubbed Financing of Recovery from Economic Emergency in Ukraine.

According to the bank, fast-disbursing funding will help the government provide critical services to Ukrainian residents, such as wages for hospital personnel, pensions for the elderly, and social programs for the most vulnerable.

"The World Bank Board of Executive Directors today authorized a supplemental budget support package for Ukraine, termed Financing of Recovery from Economic Emergency in Ukraine – or FREE Ukraine – for $489 million," said World Bank President David Malpass in a statement.

"The package agreed by the Board consists of a $350 million supplemental loan and $139 million in guarantees, as well as grant financing of $134 million and parallel financing of $100 million, resulting in total mobilization support of $723 million," the bank noted.

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The World Bank recognized the severity of the situation and emphasized that it is acting quickly to assist Ukraine and its people in the face of the Russian invasion's violence and widespread disruption.

The World Bank is also putting up a package of aid for countries bordering Ukraine that have taken in refugees as a result of the ongoing violence.

"In the coming months, the World Bank Group is preparing a $3 billion package of help for Ukraine, as well as extra support for neighboring countries hosting Ukrainian refugees," the Bank added. "According to the UNHCR, 1.7 million Ukrainians have fled to neighboring countries since the invasion began, the majority of whom are women, children, and the elderly. For the provision of public services, both for refugee and host communities, as well as for refugee labor market entry, medium and long-term support will be required."

The International Monetary Fund (IMF) and the World Bank had previously agreed to assist Ukraine with approximately $5 billion in emergency funding in response to the country's request.

The IMF's Ukraine Stand-By Arrangement program will provide $2.2 billion, while the World Bank Group is putting up a $3 billion aid package.