World Bank Group announces up to USD12 billion support for COVID-19 country response
EconomyUlaanbaatar/MONTSAME/ As COVID-19 reaches more than 60
countries, the World Bank Group is making available an initial package of up to
$12 billion in immediate support to assist countries coping with the health and
economic impacts of the global outbreak. This financing is designed to help
member countries take effective action to respond to and, where possible,
lessen the tragic impacts posed by the COVID-19 (coronavirus).
Through this new fast track package, the World Bank Group
will help developing countries strengthen health systems, including better
access to health services to safeguard people from the epidemic, strengthen
disease surveillance, bolster public health interventions, and work with the
private sector to reduce the impact on economies. The financial package, with
financing drawn from across IDA, IBRD and IFC, will be globally coordinated to
support country-based responses.
The COVID-19 support package will make available initial
crisis resources of up to $12 billion in financing — $8 billion of which is new
— on a fast track basis. This comprises up to $2.7 billion new financing from IBRD;
$1.3 billion from IDA, complemented by reprioritization of $2 billion of the
Bank’s existing portfolio; and $6 billion from IFC, including $2 billion from
existing trade facilities. It will also include policy advice and technical
assistance drawing on global expertise and country-level knowledge.
“We are working to provide a fast, flexible response based
on developing country needs in dealing with the spread of COVID-19,” said World
Bank Group President David Malpass. “This includes emergency financing, policy
advice, and technical assistance, building on the World Bank Group's existing
instruments and expertise to help countries respond to the crisis."
The financial package will provide grants and low-interest
loans from IDA for low income countries and loans from IBRD for middle income
countries, using all of the Bank’s operational instruments with processing
accelerated on a fast track basis. International Finance Corporation, the
World Bank Group’s private sector arm, will provide its clients with the
necessary support to continue operating and to sustain jobs.
The World Bank support will cover a range of interventions
to strengthen health services and primary health care, bolster disease
monitoring and reporting, train front line health workers, encourage community
engagement to maintain public trust, and improve access to treatment for the poorest
patients. The Bank will also provide policy and technical advice to ensure
countries can access global expertise.
IFC will work with commercial bank clients to
expand trade finance and working capital lines. IFC will also
directly support its corporate clients — with a focus on strategic sectors
including medical equipment and pharmaceuticals — to sustain supply chains and
limit downside risks. These solutions will leverage the lessons learned from
similar events in the past with a goal to minimize the negative economic
and social impacts of COVID-19 globally.
Countries face different levels of risk and vulnerability to
COVID-19, and will require different levels of support. The Bank Group support
will prioritize the poorest countries and those at high risk with low capacity.
As the spread of COVID-19 and its impact continues to evolve, the World Bank
Group will adapt its approach and resources as needed.
The World Bank Group is actively engaged with international
institutions and country authorities to help coordinate the global response.
Source: World Bank