The World Bank Group will deploy up to $160 billion over the next 15 months as part of its broad economic programme to mitigate the impact of coronavirus on the global economy. The international lender made the announcement Thursday after its board of executive directors approved the first set of emergency support operations for developing countries. According to a statement from the Washington-based institution, the first group of projects worth $1.9 billion, will assist 25 countries worldwide, while new operations are moving forward in over 40 countries. In addition, the Bank is providing its existing financed projects with resource funding worth up to $1.7 billion worldwide. The overall funding is expected to relieve countries from the COVID-19 crisis through emergency health support and strengthening responses in emerging economies. “We are working to strengthen developing nations’ ability to respond to the COVID-19 pandemic and shorten the time to economic and social recovery, said World Bank Group President David Malpass. The poorest and most vulnerable countries will likely be hit the hardest, and our teams around the world remain focused on country-level and regional solutions to address the ongoing crisis.” With this multibillion programme, the Bank seeks to support COVID-19 measures that will help countries respond to immediate health consequences of the pandemic and bolster economic recovery. The broader economic program will aim to shorten the time to recovery, create conditions for growth, support small and medium enterprises, and help protect the poor and vulnerable, the World Bank said. The program, with a strong focus on poverty alleviation, also aims at protecting the poorest households and the environment. Among the initial projects approved, six African countries will be provided with a total of $224.8 million under the banks Fast-Track Facility to address critical needs for the outbreak preparedness and response. Separately, the International Finance Corporation (IFC), also a member of the World Bank Group, is providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs. The plan is expected to shore up activity of about 300 companies across emerging markets. To date, IFC has made 470 transactions in the amount of $545 million in trade finance lines through its Global Trade Finance Programme, of which 54 percent was in low-income and fragile countries while 29 percent went to Africa and the Middle East. Global financial institutions continue to unveil big money programmes aimed at saving a sinking economy due to the new virus. Just on Thursday, the International Monetary Fund (IMF) approved $109.4 million credit to Rwanda which will serve to meet the urgent balance of payment needs stemming from the outbreak. Rwanda has so far registered 84 coronavirus cases, zero deaths, and zero critical cases.
