Private arm of World Bank launches $2bn program to help Ukraine businesses

The private arm of World Bank said on Thursday (December 15) that it was launching a USD 2 billion support package to help Ukrainian private sector and to prepare for reconstruction.

The International Finance Corp said the new Economic Resilience Action Program for Ukraine includes up to $1 billion from IFC’s own account, with additional financing contingent on guarantees from donor governments.

IFC's regional manager Lisa Kaestner had announced in a conference last month that this support would be extended over the next 18-24 months.

According to Ukraine's central bank, 11 per cent of businesses in the country have shut down because of war as of September 2022. The bank added that more than half were operating below capacity.

“The Ukrainian private sector has demonstrated unprecedented resilience in the face of this war,” said IFC Managing Director Makhtar Diop.

“Supporting that resilience and continuing to build private sector capacity is a priority for us. Deploying capital during this extraordinary time is essential to keep businesses and vital services running, and, when the time is right, prepare for the massive reconstruction efforts to come,” Diop said.

Russia invaded Ukraine in February this year. The conflict has caused extensive damage to infrastructure in Ukraine. Before war, the private sector contribute up to 70 per cent of Ukraine's GDP.

IFC said at least 5 million jobs have been lost.

The program will provide emergency liquidity support for agribusiness and trade finance, including for fuel imports, IFC said. It will support agricultural trade routes and logistics and aid displaced people and affected municipalities.

(With inputs from agencies)

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