The World Bank has said that it is supporting countries coping with the health and economic impacts of the COVID-19 outbreak.
The global financial institution’s support is to the tune of twelve billion dollars.
According to a statement from the Bank, the financing is designed to help member countries take effective action to respond to, and where possible, lessen the tragic impacts posed by the COVID-19.
“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. This financing 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 statement said.
The financial support comprises to 2.7 dollars billion new financing from IBRD; 1.3 billion dollars from IDA, complemented by re-prioritization of 2 billion dollars of the Bank’s existing portfolio.
In addition will be 6 billion dollars from IFC, including 2 billion dollars from existing trade facilities. It will also include policy advice and technical assistance drawing on global expertise and country-level knowledge.
World Bank Group President, David Malpass, remarked that “We are working to provide a fast, flexible response based on developing country needs in dealing with the spread of COVID-19. 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.”
Again, the World Bank said the IFC will work with commercial bank clients to expand trade finance and working capital lines.
IFC will 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 minimize the negative economic and social impacts of COVID-19 globally.
Meanwhile, the World Bank and the IMF on Wednesday, March 4, 2020, announced the cancellation of the annual spring meetings in Washington DC due to the coronavirus outbreak.
The outbreak of the deadly coronavirus since late last year has sent the business community into a state of panic with major business events gatherings canceled over health and safety concerns for participants and more importantly host countries.
