Statement from Odile Renaud-Basso, President of the European Bank for Reconstruction and Development (EBRD), Werner Hoyer, President of the European Investment Bank (EIB), Carlo Monticelli, Governor of the Council of Europe Development Bank (CEB), Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), and David Malpass, President of the World Bank Group (WBG).
We, the heads of the EBRD, EIB, CEB, IMF, and WBG, met yesterday to discuss impacts on the global economy of the ongoing war in Ukraine and our respective and collective response to this crisis.
We are horrified and deeply concerned about the Russian invasion of Ukraine and the ensuing crisis.
The attacks on civilians and civilian infrastructure are causing tremendous suffering, creating massive population displacements, threatening international peace and security, and endangering basic social and economic needs for people around the world.
In addition to the devastating human catastrophe unfolding in Ukraine, the war is disrupting livelihoods throughout the region and beyond.
The impacts will be extensive—from reduced energy and food supplies, to increases in prices and poverty and a massive undertaking of Ukraine’s reconstruction, all of which will hamper the post-pandemic recovery around the world.
The entire global economy will feel the effects of the crisis through slower growth, trade disruptions, and steeper inflation, harming especially the poorest and most vulnerable.
Higher prices for commodities like food and energy will push inflation up further.
Countries, particularly those neighbouring Ukraine, will suffer disruptions in trade, supply chains and remittances as well as surges in refugee flows.
Reduced confidence and higher investor uncertainty will impact asset prices, tighten financial conditions, and could even generate capital outflows from emerging markets.
Our institutions have responded with emergency support to Ukraine and its neighbours.
The EBRD has approved a “War on Ukraine – EBRD Resilience Package”, initially sized at €2 billion, to respond to the immediate needs of the people affected by the war and - when conditions permit - support the substantial reconstruction of Ukraine. The EBRD's package comprises an immediate Resilience and Livelihoods program covering the areas of energy security, nuclear safety, municipal services, trade finance support and liquidity for SMEs in Ukraine and in neighbouring affected countries. Once conditions permit, the EBRD will also be prepared to take part in a reconstruction program for Ukraine, to rebuild livelihoods and businesses; restore vital infrastructure; support good governance; and enable access to services. It envisages working with international partners including the EU and U.S., as well as bilateral donors and other international financial institutions.
The EIB has prepared an emergency Ukraine Solidarity Urgent Response, encompassing the provision of immediate financial support of €668 million to Ukrainian authorities and the repurposing of infrastructure project commitments to accelerate delivery of an additional €1.3 billion. So far €329 million has been disbursed. Beyond this, EIB is fully committed to help rebuild what is being destroyed by the war, by financing new critical economic and social infrastructure. In parallel, the EIB will also support the EU Eastern and Southern Neighborhood, the EU Enlargement Region and Central Asia through an immediate response, targeting in particular countries most significantly impacted by the consequences of the refugee crisis, as well as through a medium-term resilience response to mitigate social and economic impacts. Finally, EIB has developed an action plan to help alleviate the impact of the refugee crisis on refugee-hosting EU countries.
The CEB, according to its membership and special social mandate, has provided emergency grants to Ukraine’s neighbouring countries to cover immediate needs of refugees, including transportation and orientation. The CEB stands ready to also provide flexible, fast-disbursing loans to address the significant financial needs of neighbouring and other countries hosting large inflow of refugees, while remaining focused on the social sector.
The IMF disbursed emergency assistance of US$1.4 billion to Ukraine on March 9 under the Rapid Financing Instrument (RFI) to help meet urgent financing needs and mitigate the economic impact of the war. IMF staff remains closely engaged with the authorities to provide policy support as they continue to design and implement effective crisis mitigation measures. The IMF is also currently working with Moldova that has requested an augmentation of its existing IMF-supported program. The Fund stands ready to support neighboring and other countries affected by the spillovers of the war through all its instruments.
The World Bank Group has already mobilized more than US$ 925 million for Ukraine, including fast-disbursing budget support to help the government provide critical services to Ukrainian people, of which US$ 350 has been disbursed. This financing is part of a $3 billion package of support planned for Ukraine in the coming months. The World Bank also set up a multi-donor trust fund (MDTF) that is among the most rapid, targeted, and secure mechanisms to facilitate channeling grant resources from donors to Ukraine, with contributions of US$ 145 million thus far. The World Bank Group is also working on options to assist neighboring countries, including to support refugee populations, and will continue to provide trade finance to support the private sector.
We acknowledge the importance of working together to coordinate our respective responses to support Ukraine and neighbours on the financing and policy fronts and maximise impact on the ground. We are committed to strengthening international cooperation and solidarity in the face of this enormous challenge.