Washington, December 15 (Post Bureau) – The World Bank’s private investment arm said on Thursday that it has committed $2 billion in aid to Ukraine to help build the resilience of the war-torn Ukraine’s private sector and prepare for reconstruction. The package has started.
The International Finance Corporation said the new Economic Resilience Action Program for Ukraine includes up to $1 billion from the IFC’s own account, including additional financing on guarantees from donor governments.
Lisa Kastner, the IFC’s regional manager for Ukraine, told a conference in London last month that aid would be extended over the next 18-24 months.
The Central Bank of Ukraine estimates that 11% of businesses have closed due to the war by September 2022, while more than half are operating below capacity.
“Ukraine’s private sector has demonstrated unprecedented resilience in the face of this war,” said IFC Managing Director Mkhtar Diop.
“Supporting this resilience and sustaining private sector capacity is a priority for us. Capitalizing during this extraordinary time is essential to keep businesses and vital services running, and, when the time is right, prepare for the massive reconstruction efforts ahead,” said Diop.
Russia’s war has caused widespread damage to Ukraine’s infrastructure, limited market access and disrupted the private sector, which previously contributed up to 70 percent of gross domestic product.
At least 5 million jobs have been lost, the IFC said.
IFC said the program will provide emergency liquidity support for agribusiness and trade finance, including fuel imports. It will support agricultural trade routes and logistics and support displaced people and affected municipalities.
Another priority would be to support companies that need to find alternative routes for grain exports, identify alternative suppliers and buyers for agribusiness companies, develop infrastructure projects with private investment, and support important reforms for private investment. by helping them to do things suited to war conditions.
In September, IFC invested $30 million in the Horizon Private Equity Fund to invest in the information technology sectors of Ukraine and Moldova. It is working with the European Union to restore damaged residential buildings.
The World Bank estimated in October that rebuilding Ukraine would cost $349 billion, but costs are expected to rise sharply after extensive damage to power plants and other civilian infrastructure.
Reporting by Andrea Schall; Editing by Howard Goller
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