April 21, 2020
Broader economic program would provide up to $160 billion over next 15 months
WASHINGTON, April 2, 2020 — The World Bank’s Board of Executive Directors today approved a first set of emergency support operations for developing countries around the world, using a dedicated, fast-track facility for COVID-19 (coronavirus) response. The first group of projects, amounting to $1.9 billion, will assist 25 countries, and new operations are moving forward in over 40 countries using the fast-track process. In addition, the World Bank is working worldwide to redeploy resources in existing World Bank financed projects worth up to $1.7 billion, including through restructuring, use of emergency support of existing projects (CERCs) and triggering of CAT DDOs and spanning every region.
The World Bank Group is prepared to deploy up to $160 billion over the next 15 months to support COVID-19 measures that will help countries respond to immediate health consequences of the pandemic and bolster economic recovery. The broader economic program will aim to shorten the recovery time, create growth conditions, support small and medium enterprises, and help protect the poor and vulnerable. These operations will have an intense poverty focus, emphasising policy-based financing and protecting the poorest households and the environment. “The World Bank Group is taking broad, fast action to reduce the spread of COVID-19 and we already have health response operations moving forward in over 65 countries,” said World Bank Group President David Malpass. “We are working to strengthen developing nations’ ability to respond to the COVID-19 pandemic and shorten the time to economic and social recovery. The poorest and most vulnerable countries will likely be hit the hardest, and our teams worldwide remain focused on country-level and regional solutions to address the ongoing crisis.”
Responding to widespread supply chain disruptions, the World Bank is also helping countries access critically needed medical supplies by contacting suppliers on governments’ behalf. The World Bank also encourages others to financially support developing countries for the COVID-19 health response. “This fast response package will save lives and help detect, prevent and respond to COVID-19 in the countries we serve,” said Axel van Trotsenburg, World Bank Managing Director of Operations. “Our country operations will be coordinated globally to ensure best practice is quickly shared, including approaches to strengthen national health systems and prepare for potential follow-on waves of this devastating virus.”
Among the initial projects approved:
Initial Set of COVID-19 Emergency Response Projects
Funded under the Fast-Track Facility*
|Country||$USD (Mil)||Country||$USD (Mil)|
|Dem. Rep. of Congo||47.2||Paraguay||20.0|
|Djibouti||5.0||São Tomé e Principe||2.5|
*Total Project shows the full amount of the operation, FTF financing as well as IDA18, IBRD, Trust Funds or front-loaded IDA19.
The International Finance Corporation (IFC) is providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs. IFC is already working to rapidly deploy a pipeline of approximately 300 companies across emerging markets to shore up private sector activity.
IFC engagements include extending trade finance and working capital lines to partner financial institutions, as well as supporting existing clients in the infrastructure, manufacturing, agriculture and services industries that are vulnerable to the pandemic. IFC has to date committed 470 transactions in the amount of $545 million in trade finance lines through its Global Trade Finance Program, 54% of which was in low-income and fragile countries and 29% in Sub-Saharan Africa and MENA.
The broader financial support includes $6 billion in guarantees from the Multilateral Investment Guarantee Agency (MIGA), which provides political risk insurance and credit enhancement to private sector investors and lenders.
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