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The organization points out the risks of the war in Eastern Europe and affirms that the disturbances in the world’s financial markets will persist if the war continues, while granting an aid package for Ukraine.
A war with varied consequences. The World Bank issued a joint statement with the International Monetary Fund where they were “shocked and affected” by the war in Ukraine, the loss of human lives and the economic effects.
“Disturbances in financial markets will continue to worsen if the conflict persists. The sanctions announced in recent days will also have a significant economic impact,” the agencies said.
The World Bank suspended all its programs with “immediate effect” in Russia and Belarus in reaction to the Russian military invasion of Ukraine.
The institution said that it had approved new loans for Russia since 2014, when it invaded the Ukrainian peninsula of Crimea, while in Belarus the last one was in mid-2020.
Belarus is a key ally for Moscow and has facilitated the transit of Russian military personnel to Ukraine.
“We stand with the people of Ukraine in these terrifying moments. The war is also having important repercussions in other countries,” the agency said, while pointing out the economic effects caused by the conflict.
[ÚLTIMO MOMENTO] Following Russia’s invasion of Ukraine and hostilities against the Ukrainian people, the World Bank Group has halted all its programs in Russia and Belarus with immediate effect.https://t.co/Q8Qm7LgJIu
— World Bank (@WorldBank) March 2, 2022
“Commodity prices continue to rise and could fuel inflation, which hits the poor hardest. Disturbances in financial markets will continue to worsen if the conflict persists. The sanctions announced in recent days will also have a significant economic impact,” they added.
David Malpass, president of the World Bank, revealed that the agency is preparing an emergency assistance package of 3,000 million dollars to Ukraine “which would start with a fast-disbursing budget support operation in the amount of at least 350 million dollars, which will be submitted for Board approval this week,” they commented.
The agency will provide a disbursement for health and education of 200 million dollars and said they are prepared “to reinforce financial, technical and policy support to neighboring countries, as necessary.”
After months of tension, Russia launched a military operation in Ukraine and in response the international community, led by the US and the European Union, responded with economic sanctions on Moscow to suffocate the Russian economy.
The conflict has left more than 2,000 Ukrainian civilians dead, according to the State Emergency Service of Ukraine, while Russia acknowledged the loss of 498 soldiers, as well as 1,597 wounded soldiers.
with EFE