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$2 Billion In Funds Added By World Bank For Its Members Bit By Coronavirus

$2 Billion In Funds Added By World Bank For Its Members Bit By Coronavirus
The amount of money that the World Bank has set aside for fast-track financing available to members to respond to the global coronavirus pandemic has been augmented by another $2 billion with the total amount now at $14 billion. The bank had announced the initial package on March 3. 
The bank said that after this addition, its International Financing Corp will now have a total of $8 billion in its kitty now to provide support to the private companies and their employees that have been hit hard by the economic fallout of the coronavirus pandemic.
The Bank said that the majority of the funding that has been set aside by it will b e available for its client financial institutions to enable them to continue to offer trade financing, working capital and medium-term financing to privately owned companies that are grappling to deal with the disruption in their supply chain because of the coronavirus pandemic.
Existing clients in tourism, manufacturing and other heavily affected sectors would also be helped by the money, the IFC said, as the money will allow them to keep paying their bills. The funds would also help companies in the healthcare industry that are struggling to cater to the increased demand for services, equipment and drugs.
The bank was committed to provide a fast and flexible support to companies based on the identified needs of the companies in the developing countries, the World Bank President David Malpass said.
Malpass said that the shortening of the time to recover for companies is essential. Malpass added that the bank had already initiated support operations and economies, companies and jobs will be attempted to be sustained by the latest expanded funding tools that was approved by the Bank.
The coronavirus pandemic has spread to 162 countries with almost 200,000 people being infected by it with 7,495 deaths globally.  
According to Philippe Le Houerou, the Chief Executive Officer of IFC, the aim of the institution is to assist and support clients to sustain their operations even in the face of the severe economic impact that the coronavirus pandemic has unleashed all over the world as well be in position to be able to recover as soon as possible.
Requests from clients was approved by the boards of directors of the World Bank and the IFC on Tuesday while approving the addition of $2 billion in new funding after the announcement of the initial $6 billion that the IFC was awarded through other instruments, the World Bank said .
IFC’s Global Trade Liquidity Program will be funded by this new component as well as the Critical Commodities Finance Program of the institution. Both the programs of the institution offer support to local banks to enable them to continue to offer funds to private companies in the emerging markets.
The focus of the IFC, the biggest development institution globally, is to offer support to the private sector companies in the emerging economies. Currently the institution partners with more than 2,000 businesses globally.

Christopher J. Mitchell

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