Major international economic organizations, including the World Bank, the International Monetary Fund and the European Bank for Reconstruction and Development, have put in guard over the “widespread” consequences of the Russian attack on Ukraine on the global economy.
In a joint statement, the organizations expressed their “terrible and grave concern” about the war in Ukraine, explaining that they met on Thursday to discuss its impact and collective response to it.
The signatory institutions, including the European Investment Bank, also stated that “the devastating humanitarian catastrophe in Ukraine, war is disrupting livelihoods in the region and beyond. “
He explained that the war limits energy and food supplies, raises prices and increases poverty, which “will damage the economic recovery. post-pandemic in the world “.
“The global economy as a whole will suffer the consequences through slower growth and disruption of trade, and the poorest and most vulnerable will be the hardest hit,” the note reads.
Institutions stressed that Ukraine’s neighboring countries will suffer in particularly of the disruption of trade and supply chains and will face “refugee waves”.
The damage will also affect the financial markets, where the uncertainty of the outlook will be reflected in the prices of asset and will cause a tightening of financial conditions and could even lead to an “outflow of capital from emerging markets”.
Reminding the institutions of the measures taken so far, they listed a € 2 billion aid package from the European Bank for Reconstruction and Development which covers in particularly energy and nuclear safety, 668 million euros from the European Investment Bank, 1.4 billion dollars in emergency aid from the International Monetary Fund and $ 925 million from the World Bank.
Institutions felt that Ukraine’s neighboring countries would face severe repercussions in the face of a large influx of people in escape from war.
“The countries, in Ukraine’s neighbors in particular will experience disruptions to trade, supply chains and remittances, as well as an increase in the flow of refugees, “he added.
“We understand the importance of working together to coordinate our responses to support Ukraine and its neighbors on the financial and political front and to maximize the impact on the ground,” the institutions added.
She noted that she was “committed to strengthening international cooperation and solidarity in the face of this great challenge”.
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