Heads of global financial institutions on impact of crisis in Ukraine
YEREVAN, March 18, /ARKA/. After discussing March 17 the impacts on the global economy of the ongoing war in Ukraine and the international community’s respective and collective response to this crisis, Odile Renaud-Basso, President of the European Bank for Reconstruction and Development (EBRD), Werner Hoyer, President of the European Investment Bank (EIB), Carlo Monticelli, Governor of the Council of Europe Development Bank (CEB), Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), and David Malpass, President of the World Bank Group (WBG) said in a joint statement that they are horrified and deeply concerned about the Russian invasion of Ukraine and the ensuing crisis.
“The attacks on civilians and civilian infrastructure are causing tremendous suffering, creating massive population displacements, threatening international peace and security, and endangering basic social and economic needs for people around the world,’ they said in a joint statement .
In addition to the devastating human catastrophe unfolding in Ukraine, the war is disrupting livelihoods throughout the region and beyond. The impacts will be extensive—from reduced energy and food supplies, to increases in prices and poverty and a massive undertaking of Ukraine’s reconstruction, all of which will hamper the post-pandemic recovery around the world.
The entire global economy will feel the effects of the crisis through slower growth, trade disruptions, and steeper inflation, harming especially the poorest and most vulnerable. Higher prices for commodities like food and energy will push inflation up further. Countries, particularly those neighboring Ukraine will suffer disruptions in trade, supply chains and remittances as well as surges in refugee flows. Reduced confidence and higher investor uncertainty will impact asset prices, tighten financial conditions, and could even generate capital outflows from emerging markets. Our institutions have responded with emergency support to Ukraine and its neighbors.,’ their statement says.
The EBRD has approved a “War on Ukraine – EBRD Resilience Package”, initially sized at EUR 2 billion, to respond to the immediate needs of the people affected by the war and - when conditions permit - support the substantial reconstruction of Ukraine.
The EIB has prepared an emergency solidarity package for Ukraine of EUR 2 billion, including the provision of EUR 668 million in immediate liquidity assistance to the Ukrainian authorities. The CEB, according to its membership and special social mandate, has provided emergency grants to Ukraine’s neighboring countries to cover immediate needs of refugees, including transportation and orientation. The
CEB stands ready to also provide flexible, fast-disbursing loans to address the significant financial needs of neighboring and other countries hosting large inflow of refugees, while remaining focused on the social sector.
The IMF disbursed emergency assistance of US$1.4 billion to Ukraine on March 9 under the Rapid Financing Instruments to help meet urgent financing needs including to mitigate the economic impact of the war.
The World Bank Group has already mobilized more than US$925 million for Ukraine, including fast-disbursing budget support to help the government provide critical services to Ukrainian people, of which US$350 million has been disbursed. This financing is part of a US$3 billion package of support planned for Ukraine in the coming months. .
‘We acknowledge the importance of working together to coordinate our respective responses to support Ukraine and neighbors on the financing and policy fronts and maximize impact on the ground. We are committed to strengthening international cooperation and solidarity in the face of this enormous challenge,’ their statement says.-0-
