– Russia's war of aggression against Ukraine has dramatic consequences for the Ukrainian economy. We are currently using PLN 200 million of support that we have allocated to help directly for the Ukrainian authorities. This money will undoubtedly be very useful, says the minister foreign affairs Anniken Huitfeldt.

The money will be transferred through the World Bank's crisis package for Ukraine. The International Monetary Fund (IMF) estimated in early March that as a result war gross domestic product of Ukraine it could drop 10 to 35 percent this year. These estimates and the extent of war damage involve great uncertainty. The situation is difficult and unclear.

There is an urgent need to support the state apparatus and critical infrastructure

In addition to purely humanitarian needs, there is an urgent need to support the state apparatus and critical infrastructure. On March 7, the board of the World Bank approved the crisis package for Ukraine worth over USD 700 million. The package consists of a $ 350 million budget support loan from the International Bank for Reconstruction and Development (IBRD). Additionally, this loan is supplemented by guarantees and grants through a new multi-donor fund for Ukraine.

The money that will flow into this fund will be used for pensions, social assistance (cash benefits), as well as salaries for medical staff, teachers and government employees.

Multi-donor fund

The World Bank informs about the great need for further financial support from the Ukrainian authorities in the future. The fund has many donors, it was created as part of the bank's crisis package and it will undoubtedly play a key role. The bank's management strongly encourages further contributions.

Norway has also allocated two billion kronor to humanitarian actions and assistance to refugees in connection with the crisis in Ukraine. About one billion kronor has been paid out so far.

Source: regjeringen

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