War in Ukraine: World Bank approves $723m financial package

The World Bank has approved $723 million (£551 million) in loans and grants for Ukraine as the country battles a Russian invasion.

The bank said it continues to work on another $3 billion support package for the country in the coming months.

It also pledged additional aid to neighboring countries that are hosting more than 1.7 million refugees, mostly women, children and the elderly.

The financial package for Ukraine includes a $100 million commitment from the UK.

“The World Bank Group is taking swift action to support Ukraine and its people in the face of violence and extreme disruption caused by the Russian invasion,” Bank President David Malpass said in a statement.

The bank said the funds would help Ukraine’s government deliver essential services, including wages for hospital workers, pensions for the elderly and welfare programs for those in need.

The package includes a US$350 million loan, topped up by approximately US$139 million through guarantees from the Netherlands and Sweden.

It was also made up of $134 million in grants from the UK, Denmark, Latvia, Lithuania and Iceland, and $100 million in funding from Japan.

Last week, Mr Malpass told the BBC the war was “a catastrophe” for the world that would hurt global economic growth.

“The war in Ukraine comes at a bad time for the world because inflation has already risen,” he said.

He stressed that his greatest concern was “the sheer loss of life.”