World Bank: Increased outbreak response financing to US $ 14 billion to help economic security and employment
The reporter learned from the World Bank that the World Bank and the International Finance Corporation (IFC) Board of Directors approved today that the rapid financing program that will assist companies and countries to prevent, detect and respond to the rapid spread of new coronary pneumonia has increased to $ 14 billion.David Malpas, President of the World Bank Group, said that the aid project is in preparation and that the expanded funding pool approved today will maintain the economy, businesses and employment.  IFC is a member institution of the World Bank Group and increased its funding for new coronary pneumonia from US $ 6 billion to US $ 8 billion as part of a US $ 14 billion overall aid program to aid the spread of new coronary pneumoniaCivilian businesses and their employees affected by the recession.This financing plan will strengthen the national public health prevention system, including curbing, diagnosing and treating diseases.  It is understood that a large amount of IFC funds will flow to customer financial institutions so that they can continue to provide trade financing, working capital support and medium-term financing to private companies that respond to supply chain disruptions.IFC funds will also help existing customers in industries directly affected by the pandemic, such as tourism and manufacturing, to continue to pay for expenses.The assistance program is beneficial to the industry involved in responding to the pandemic, including healthcare and related industries, which are facing increasing demand for services, medical equipment and medicines.  David Malpas, President of the World Bank Group, said: “It is necessary to shorten the time to achieve recovery.”This assistance program provides emergency support to businesses and their workers to mitigate the financial and economic impact of the spread of new coronary pneumonia.The World Bank Group promises to respond quickly and flexibly according to its own needs.The assistance project is already in preparation, and the expanded funding pool approved today will help sustain the economy, businesses and employment.”According to this, the additional $ 2 billion is based on the original response plan announced on March 3, which includes $ 6 billion in World Bank funding and $ 6 billion in IFC funding to helpSMEs affected by economic shocks provide a lifeline.  Overall, IFC ‘s response includes four parts: First, the $ 2 billion from the “Physical Sector Crisis Response Fund” will support existing customers in infrastructure, manufacturing, agriculture, and service industries that are vulnerable to pandemics.IFC will provide loans to businesses in need and make equity investments when necessary.This tool will also help companies in the healthcare industry facing rising demand.  Second, the $ 2 billion from the existing “Global Trade Finance Plan” will be used to reduce the payment risks of financial institutions, thereby providing trade financing for commodity import and export companies.IFC looks forward to participating in supporting SMEs participating in global supply chains.  Third, the $ 2 billion from the “working capital solution plan” will provide credit to emerging market banks to help companies increase their working capital, which is the pool of funds that companies use to pay expenses and compensate workers.  Fourth, the newly approved part of the approval: USD 2 billion from the “Global Trade Liquidity Plan” and “Key Commodity Financing Plan”, which is sufficient for local banks to provide risk-sharing support so that they can continue to provide funding to emerging market companies.Reporter Hou Runfang edited Sun Yong proofreading Wang Xin