The International Financial Corporation (IFC) has announced a new $2 billion bailout package to help boost the vitality of the Ukrainian private sector and support the well-being of Ukrainians in response to Russia’s invasion of the country.
“The $2 billion response package includes $1 billion from IFC’s own account, as well as additional funding that depends on guarantees from donor governments,” the IFC said on Friday.
IFC notes that the contribution of the private sector to Ukraine’s GDP was almost 70%, according to NBU estimates for September 2022, 11% of enterprises completely stopped working, and more than half did not work at full capacity, and the Ministry of Economy indicated that at least 5 million workers were lost places.
“During the war and initial reconstruction stage, the Program will focus on ensuring access to critical goods and services with emergency liquidity support for agribusiness and trade finance, including for fuel imports,” the IFC said in the press release said.
Other priority areas of the Program at this stage include the maintenance of economic activity; critical economic infrastructure such as agricultural trade routes and logistics; and providing for the needs of displaced persons and war-affected municipalities.
It is indicated that IFC financing will be provided directly to current and new clients in the real sector, as well as through financial intermediaries for further lending to micro, small and medium-sized enterprises and agribusiness, as well as through trade finance guarantees.
IFC said it has refocused its advisory program to support clients as they adapt to war and prepare for reconstruction.
“The Ukrainian private sector has shown unprecedented resilience in the face of this war. Our top priority is to maintain this resilience and continue to develop the potential of the private sector,” IFC Managing Director Makhtar Diop said.
