World Bank approves first USD 1.9B for poor countries battling health crisis

Washington: The World Bank has approved its first funds to help some of the globe’s poorer countries combat the COVID-19 outbreak.

It approved total aid of USD 1.9 billion for 25 countries on Thursday. The largest amount of assistance was USD 1 billion for India followed by USD 200 million for Pakistan, USD 129 million for Sri Lanka, USD 100 million for Afghanistan and USD 83 million for Ethiopia.

World Bank President David Malpass predicted the bank could provide up to USD 160 billion in assistance over the next 15 months.

World Bank officials said the emergency resources would include money to purchase critical medical supplies such as masks and ventilators, with the World Bank lending its procurement expertise to help obtain these supplies on global markets.

The approval of the first round of support for 25 countries will be followed quickly with aid to another 40 countries, officials said.

In addition to the support effort, Malpass said he and Kristalina Georgieva, managing director of the International Monetary Fund, are lobbying the Group of 20 major industrial countries to support instituting a 14-month pause in requiring the poorest countries to make debt repayments.

Malpass said that would free up about USD 14 billion over the next year that the countries would be able to use to fight the coronavirus.

He said that the proposal was discussed at last week’s conference call with President Donald Trump and other G-20 leaders.

Malpass said that he hoped it would receive approval when the World Bank’s policy panel, the Development Committee, holds a virtual meeting on April 17.