World Bank approves additional $610 million in financing for Ukraine
The World Bank on Tuesday said it had approved an additional financing package totaling $610 million to address urgent relief and recovery needs in Ukraine as the war with Russia continues. ... |…

WASHINGTON, Dec 20 (Reuters) - The World Bank on Tuesday
said it had approved an additional financing package totaling
$610 million to address urgent relief and recovery needs in
Ukraine as the war with Russia continues. The package includes an additional $500 million loan from
the World Bank's International Bank for Reconstruction and
Development (IBRD) that is supported by a guarantee from
Britain, and a new project to restore and improve access to
health care and address war-related needs for health services,
the global lender said. The aid comes on top of some $18 billion already mobilized
for Ukraine by the World Bank, of which some $15 billion has
been disbursed. "Russia's invasion of Ukraine continues to have
devastating economic and humanitarian consequences, impacting
the health sector, critical energy infrastructure, and transport
networks," World Bank Group President David Malpass said in a
statement. The additional $500 million in IBRD lending for the
Public Expenditures for Administrative Capacity Endurance
(PEACE) Project, will help the Ukrainian government cover
expenditures related to child and family benefits, salaries of
public employees, and utility payments, the World Bank said. The remaining $110 million would go to a Health
Enhancement and Life-saving (HEAL Ukraine) Project aimed at
improving and strengthening primary health care, addressing
increased demand for mental health and rehabilitation services
due to the war, and restoring services in hospitals that are
facing capacity constraints, it said. Initial funding for the project includes a 100 million
euro IBRD loan, backed by a guarantee from the Government of
Spain, and a $10 million grant from the Global Financing
Facility for Women, Children, and Adolescents (GFF). Additional funds for the project are expected to grow to
a total of $500 million, starting with an upcoming $10 million
grant through the Ukraine Relief, Recovery, Reconstruction and
Reform Trust Fund (URTF). The World Bank in October estimated the recovery costs
facing Ukraine would amount to nearly $350 billion, but
officials say the costs have soared further given Russia's
targeting of civilian infrastructure since mid-October. As of Dec. 6, 507 healthcare facilities in Ukraine -
equivalent to 5.5% of public providers - have been destroyed or
damaged, the World Bank said. It said utilization of health services also
significantly decreased during the first months of the war, with
the number of childhood vaccinations down 40% compared to the
previous year. In September, it said almost a third of people living in
Ukraine reported that they could not afford to buy necessary
medicines.
(Reporting by Andrea Shalal; Editing by Chris Reese and Paul
Simao)