The World Bank Group gave $12 billion to help countries that are dealing with the health and economic effects of the global outbreak of coronavirus.
As coronavirus reaches more than 60 countries in the world, World bank’s financing is designed to help it’s member countries take constructive action to respond and reduce the tragic effects caused by the virus where possible.
Through this new package, the World Bank Group will help developing countries strengthen health systems, by bettering access to health services to protect people from the virus, strengthening the virus surveillance, improving the public health interventions and to reduce the impact on economies by working with the private sector.
To support country-based responses, World Bank’s financial package will be globally coordinated with financing drawn from across International Bank for Reconstruction and Development (IBRD), International Development Association (IDA) and International Finance Corporation (IFC).
Through the coronavirus support package, initial crisis resources of up to $12 billion in financing will be made available and $8 billion of which is now on a fast track basis.
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This comprises of new financings from IBRD of up to $2.7 billion, $1.3 billion from IDA, complemented by reprioritization of $2 billion of the world Bank’s existing portfolio and $6 billion from IFC as well as $2 billion from existing trade facilities.
“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.” said World Bank Group President David Malpass.
For low-income countries, the financial package will provide low-interest loans and grants from IDA and financing for middle-income countries will come from IBRD loans.
International Finance Corporation(IFC) will provide its clients with the necessary support to continue operating and sustaining jobs. IFC is the World Bank Group’s private sector arm,
To expand trade finance and working capital lines, IFC will work with commercial bank clients. The financial institution will also support its corporate clients directly mostly on strategic sectors including pharmaceuticals and medical equipment to sustain supply chains and control downside risks.