World Bank approves fund to facilitate G7's $50 billion loan for Ukraine, Reuters reports
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The World Bank's executive committee approved on Oct. 10 the creation of a new fund to help fulfill the Group of Seven (G7)'s $50 billion loan, Reuters reported, citing sources.
During the June G7 summit in Italy, G7 leaders publicly confirmed a deal on the plan to provide Ukraine with a $50 billion loan by the end of the year, which will be repaid using interest from billions in frozen Russian assets.
In September, European Commission President Ursula von der Leyen announced a loan of up to 35 billion euros ($39 billion) as part of that pledge.
As the ongoing full-scale Russian invasion continues to put pressure on Ukraine's economy and business, the World Bank plays a crucial role in supporting the country's economic sector.
Concerns about the stability of future international funding for Ukraine have deepened in the leadup to the U.S. presidential election, with many fearing that a victory for Republican nominee Donald Trump could result in a reduction of American support.
The new World Bank-administered financial intermediary fund (FIF) could help allay those concerns.
"This is a game-changing amount of money," said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center, referring to the combined effect of the new World Bank fund and an announcement the previous day that the EU had approved the 35 billion euro loan as part of the G7 loan.
"It's real resources on the ground that can make a difference," Lipsky told Reuters.
The funding will come from the U.S., Japan, and Canada, the sources said, adding that it will be backed by interest generated from frozen Russian assets.
The exact amounts that each country would contribute were not specified.
