World Bank launches $12b COVID-19 package for developing countries

It aims to strengthen countries’ health services and support the private sector.

The World Bank has announced an initial package of up to $12b in immediate support to help developing countries weather the health and economic impacts of the COVID-19 outbreak.

About $8b of the fund is new and was made available on a fast-track process.

Of the funds, $2.7b new financing came from the International Bank of Reconstruction and Development (IBRD); $1.3b came from International Development Association (IDA), along with reprioritisation of $2b in IDA’s existing portfolio; and $6b from the International Finance Corporation (IFC). This is addition to $2b from existing trade facilities.

World Bank aims to use the fund to aid developing nations in strengthening their health systems, which include better access to health services amidst the epidemic, stronger disease surveillance, improved public health interventions, and coordination with the private sector to reduce the impact on economies.

The funding also comes with policy advice and technical assistance, the press release added.

The financial package will provide grants and low-interest loans from IDA for low income countries and loans from IBRD for middle income countries.

Meanwhile, IFC will work with commercial bank clients to expand trade finance and working capital lines. It will also provide direct support to its corporate clients to sustain supply chains and limit downside risks.