World Bank’s IFC still disbursing funds in Ukraine despite war, chief says -Breaking
By Dan Burns
DAVOS in Switzerland (Reuters) – The World Bank’s investment arm continued to disburse money to private Ukrainian firms despite the conflict and was looking for financing to help the country re-orient its economy toward “greening”. This, according to the head unit.
Makhtar Diop (Managing Director of International Finance Corp) stated that despite the conflict, they have maintained disbursements to certain companies. He spoke on the sidelines at the World Economic Forum Davos. Our commitment to the cause has not wavered.”
Diop became last year the first African to lead the World Bank’s private-sector division. In an interview with Reuters, Diop also stated that the IFC is keen to raise capital for Ukrainian companies which can turn the country’s energy intensive focus to its financial sector. He said that the IFC has been working with several small-to medium-sized businesses as well as “three to four” banks in order to move this effort forward.
The World Bank announced last week that it will make $30 billion to address a food crisis caused by Russia’s war against Ukraine. This has resulted in a reduction of grain exports from these two countries. Diop stated that the IFC plans to supplement this with private sector financing, but it is still working on establishing the platform.
Diop said that IFC is looking at regional financing options that could make capital accessible to Ukrainian clients as well as its neighboring countries that were also affected by Russia’s February 24th invasion and the flow of refugee over Ukraine’s border. His team is currently working on a proposal that will be submitted to the board.
Diop declared, “In spite the real risk…we are willing to take that risk. It is because the Ukraine situation is so dire.”