World Bank agrees to USD 1.49 billion in funds for Ukraine

World Bank agrees to USD 1.49 billion in funds for Ukraine.

On Tuesday, the World Bank’s executive board authorized $1.49 billion in extra funding for Ukraine. It will assist pay government and social workers’ salaries, bringing the bank’s total committed contribution to more than $4 billion.

According to the World Bank, the current cash is backed by financial assurances from the United Kingdom, the Netherlands, Lithuania, and Latvia. Parallel funding from Italy and donations from a new Multi-Donor Trust Fund are also helping to fund the project.

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In the short term, Ukraine says it needs at least $5 billion a month to keep its government running in the face of Russia’s invasion in February and the conflict that has shut down large parts of its economy. 

Last month, the Group of Seven industrial democracies offered $9.5 billion in new financing, increasing their total non-military contribution to roughly $20 billion.

The World Bank has been working with donor nations to assist health care, education, social services, electricity and water supply, and roads via its different funding initiatives.

In a statement, World Bank Eastern Europe country director Arup Banerji said the basic services were “important to averting further deterioration in living circumstances and poverty in Ukraine beyond the misery wrought by the conflict.”