AfricaPress-Tanzania: THE World Bank (WB) and the International Finance Corporation (IFC) Boards of Directors have jointly approved an increase of 32.2 trl/-(14bn US dollar) package of fast-track financing to assist companies and countries in their efforts to prevent, detect and respond to the rapid spread of COVID-19.
IFC, a member of the World Bank Group, will increase its COVID-19 related financing availability to 18.4trl/-(8bn US dollar) as part of the 32.2trl/-, up from an earlier 13.8trl/-(6bn US dollar), to support private companies and their employees hurt by the economic downturn caused by the spread of COVID-19.
According to a press statement made available to the “Daily News” on Wednesday, the package will strengthen national systems for public health preparedness, including disease containment, diagnosis, treatment and support for the private sector.
“The bulk of the IFC financing will go to client financial institutions to enable them to continue to offer trade financing, working-capital support and medium-term financing to private companies struggling with disruptions in supply chains.
IFC’s response will also help existing clients in economic sectors directly affected by the pandemic–such as tourism and manufacturing—to continue to pay their bills,” the IFC statement added.
It added that the package will also benefit sectors involved in responding to the pandemic, including healthcare and related industries, which face increased demand for services, medical equipment and pharmaceuticals.
“It’s essential that we shorten the time to recovery. This package provides urgent support to businesses and their workers to reduce the financial and economic impact of the spread of COVID-19,” said David Malpass, President of the World Bank Group.
Malpass said the Bretton Wood institution is committed to a fast, flexible response based on the needs of developing countries adding “support operations are already underway, and the expanded funding tools approved today will help sustain economies, companies and jobs.”
The additional 4.6trl/-(2.3bn US dollar), according to the statement, builds on the announcement of the original response package on March 3, which included 13.8trl/-in financing by the World Bank to strengthen health systems and disease surveillance and 13.8trl/-by IFC to help provide a lifeline for micro, small and medium sized enterprises, which are more vulnerable to economic shocks.
“Not only is this pandemic costing lives, but its impact on economies and living standards will likely outlive the health emergency phase.
By ensuring our clients sustain their operations during this time, we hope the private sector in the developing world will be better equipped to help economies recover more quickly,” Philippe Le Houérou, Chief Executive Officer of IFC said.
The IFC official described that the amount will help vulnerable groups to more quickly recover their livelihoods and continue to invest in the future.
