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World Bank, IMF racing to get aid to Ukraine in coming weeks, months -Breaking

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© Reuters. FILEPHOTO: A view of the International Monetary Fund’s headquarters in Washington is taken ahead of IMF/World Bank’s spring meetings, which took place April 8th, 2019. REUTERS/Yuri Gripas

Andrea Shalal, David Lawder

WASHINGTON, (Reuters) – The International Monetary Fund (IMF) and the World Bank said Tuesday that they are racing to give billions more funding to Ukraine over the coming weeks and months. They also added that there were “significant spillovers” from war in Ukraine to other countries.

Kristalina Georgieva, IMF Chief, and David Malpass, President of the World Bank, stated that the war is driving commodities prices up, which could further fuel inflation. If the conflict continues, disruptions to financial markets will continue to worsen. Economic sanctions imposed by the United States and Europe, as well as other allies, would have significant effects.

Although they expressed shock and sadness at the conflict, leaders did not mention Russia as a shareholder of both institutions. On February 24, Russia invaded Ukraine in full scale and is currently bombarding urban areas of Ukraine with its armed forces.

“People are being killed, injured, and forced to flee, and massive damage is caused to the country’s physical infrastructure,” Georgieva and Malpass said in a joint statement. Through these horrific developments, we stand alongside the Ukrainian people. There are also significant spillovers from the war to other countries.

According to them, the IMF/World Bank was urgently increasing funding and policy support for Ukraine. They also maintained daily contact with officials on crises measures.

The IMF board could consider Ukraine’s request for emergency financing through the Rapid Financing Instrument as early as next week, they said. Under its stand-by agreement, an additional $2.2billion was made available to Ukraine before June’s end.

They also said that the World Bank was preparing to provide $3 billion in support over the next few months. The funding will begin with a rapid-disbursing injection budget of at least $350 millions that the bank board will review this week. Next, $200 million would be used for education and health programs.

Reuters reported on Tuesday that the loan was for $350 million.

Both institutions stated that they are also looking at the financial and economic impact of war and refugees on countries around the globe. As needed, the two institutions said that they were ready to give Ukraine’s neighboring countries more policy, financial, and technical support. According to the U.N refugee agency, more than 660,000 Ukrainians fled Ukraine in search of asylum in countries like Poland, Romania, and Hungary.

According to the institutions, “Coordinated international actions will be critical in order to minimize risks and navigate through the dangerous period ahead.”

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