Joint Statement of Heads of International Financial Institutions with Programs in Ukraine and Neighboring Countries
IMF News, March 17, 2022
Source details
- Canonical URL
- Joint Statement of Heads of International Financial Institutions with Programs in Ukraine and Neighboring Countries
Other formats
Bibliographic details
- Published: March 17, 2022
Context and statement
- Press Release No. 22/80, March 17, 2022.
- Statement from Odile Renaud-Basso (EBRD), Werner Hoyer (EIB), Carlo Monticelli (CEB), Kristalina Georgieva (IMF), and David Malpass (WBG).
- Expressed horror and deep concern about the Russian invasion of Ukraine and ensuing crisis, noting attacks on civilians and civilian infrastructure, massive population displacements, threats to international peace and security, and endangerment of basic social and economic needs.
Humanitarian and economic impacts described
- Direct humanitarian effects: tremendous suffering, massive population displacements.
- Economic and social impacts expected to be extensive:
- Reduced energy and food supplies.
- Increases in prices and poverty.
- Massive undertaking of Ukraine’s reconstruction.
- Hampering of the post-pandemic recovery globally.
- Global transmission channels highlighted:
- Slower growth, trade disruptions, and steeper inflation.
- Higher prices for commodities like food and energy pushing inflation up further.
- Countries neighboring Ukraine suffering disruptions in trade, supply chains and remittances, and surges in refugee flows.
- Reduced confidence and higher investor uncertainty impacting asset prices, tightening financial conditions, and potential capital outflows from emerging markets.
Institutional responses and financial packages
- EBRD:
- Approved a “War on Ukraine – EBRD Resilience Package”, initially sized at EUR 2 billion.
- Package comprises an immediate Resilience and Livelihoods program: energy security, nuclear safety, municipal services, trade finance support, and liquidity for SMEs in Ukraine and in neighboring affected countries.
- Prepared to participate in reconstruction when conditions permit, working with international partners including the EU and U.S., bilateral donors, and other international financial institutions.
- EIB:
- 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.
- Accelerating delivery of an additional EUR 1.3 billion of commitments made for infrastructure projects.
- Of the emergency liquidity assistance, EUR 329 million has been disbursed in the past week; an additional EUR 329 million will be disbursed over the coming days.
- Developing a multi-billion euro package for the EU Eastern and Southern Neighborhood, the EU Enlargement Region and Central Asia to mitigate refugee crisis consequences and address social and economic fallout.
- Will work within the EU with Member States, National Promotional Banks and the European Commission on an action plan to help alleviate the impact of the refugee crisis on EU countries hosting refugees.
- CEB:
- Provided emergency grants to Ukraine’s neighboring countries to cover immediate needs of refugees, including transportation and orientation.
- Stands ready to provide flexible, fast-disbursing loans to address significant financial needs of neighboring and other countries hosting large inflows of refugees, while remaining focused on the social sector.
- IMF:
- Disbursed emergency assistance of US$1.4 billion to Ukraine on March 9 under the Rapid Financing Instrument (RFI) to help meet urgent financing needs including to mitigate the economic impact of the war.
- IMF staff remains closely engaged with the authorities to provide policy support as they continue to design and implement effective crisis mitigation measures.
- Working with Moldova, which has requested an augmentation of its existing IMF-supported program.
- Stands ready to support neighboring and other countries affected by spillovers of the war through all its relevant instruments.
- World Bank Group:
- Mobilized more than US$925 million for Ukraine, including fast-disbursing budget support to help the government provide critical services, of which US$350 million has been disbursed.
- Financing is part of a US$3 billion package of support planned for Ukraine in the coming months.
- Set up a multi-donor trust fund (MDTF) to facilitate channeling grant resources from donors to Ukraine, with contributions of US$145 million thus far.
- Working on options to assist neighboring countries, including support for refugee populations, and will continue to provide trade finance to support the private sector.
Coordination and commitment
- Acknowledgement of the importance of working together to coordinate responses on financing and policy fronts to maximize impact on the ground.
- Commitment to strengthening international cooperation and solidarity in the face of the challenge.
Joint Statement of Heads of International Financial Institutions with Programs in Ukraine and Neighboring Countries, March 17, 2022.