World Bank Group raises coronavirus response to $14bln to support economies, protect jobs

IFC, a member of the World Bank Group, announced to increase its COVID-19 related financing availability to $8 billion as part of the $14 billion package.

Earlier, IFC decided $6 billion for the package to support private companies and their employees hurt by the economic downturn caused by the pandemic.

The finance 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 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.

The additional $2 billion builds on the announcement of the original response package on March 3, which included $6 billion in financing by the World Bank to strengthen health systems and disease surveillance and $6 billion by IFC to help provide a lifeline for micro, small and medium sized enterprises, which are more vulnerable to economic shocks.

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.

“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 in a statement to media.

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