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World Bank announces up to $12 billion in immediate funds for coronavirus

| Updated: March 04, 2020 15:15:39


A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018 — Reuters/Files A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018 — Reuters/Files

The World Bank Group (WBG) has come up with an immediate support of up to US$12 billion to assist countries coping with the health and economic impacts of the global outbreak.

This financing support 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), the global lender made the announcement in a press release on Tuesday. 

“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,” it said.

Through this new fast track package, the WBG 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.

The support comprises up to $2.7 billion new financing from the IBRD (International Bank for Reconstruction and Development (IBRD); $1.3 billion from the IDA (International Development Association), complemented by reprioritisation of $2 billion of the bank’s existing portfolio; and $6 billion from the IFC (International Finance Corporation), including $2 billion from existing trade facilities, it said.

The support will also include policy advice and technical assistance drawing on global expertise and country-level knowledge, it added.

“We are working to provide a fast, flexible response based on developing country needs in dealing with the spread of COVID-19,” the WBG press releases said, quoting 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," David Malpass was also quoted as saying.

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.  

The 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, it mentioned. 

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. 

The IFC will work with commercial bank clients to expand trade finance and working capital lines, the press release said, adding that the IFC would 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 minimise the negative economic and social impacts of COVID-19 globally, it revealed. 

Countries face different levels of risk and vulnerability to COVID-19, and will require different levels of support. The World Bank Group support will prioritise 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, according to the press release.

The WBG is actively engaged with international institutions and country authorities to help coordinate the global response, it added.

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