WB to offer quick aid to countries most affected by global financial crisis

The World Bank Group announced on Tuesday, December 09, the creation of a $ 2 billion fast-track facility to speed up grants and long-term, interest-free loans to help the world’s poorest countries cope with the impact of the global financial crisis, Info-Prim Neo has learnt from a communique by the WB. The International Development Association (IDA) Financial Crisis Response Fast-Track Facility, approved on Tuesday by the World Bank’s Board of Executive Directors, will allow the Bank Group to provide rapid funding for social safety nets, infrastructure, education, and health. The Government of Moldova has the opportunity to take advantage of this facility in preparing a comprehensive response and reducing the possible effects of the crisis in Moldova. “The poorest people will be hit the hardest by the crisis that is likely to get worse next year. Our Global Economic Prospects report projects developing country growth will be 4.5 percent next year, down from 7.9 percent in 2007. We want to help countries manage this downturn with rapid financing to help minimize its impacts and by assisting them in designing supportive policies,” said World Bank Group President Robert B. Zoellick. The facility would fast-track an initial $2 billion of the $42 bn of IDA15 resources available to 78 of the world’s poorest countries over the coming three years. “We cannot afford business as usual. We need a human rescue package, not just a financial rescue package – and we need a new rapid response capability to make sure the money gets quickly to where it is most needed. Already 100 million people have been driven into poverty as a result of high food and fuel prices, and we estimate that a 1 percent decline in developing country growth rates will trap 20 million more people in poverty.,” said Zoellick. The facility will foster rapid Bank response to the pressing needs of IDA countries, including the Republic of Moldova, based on more swift World Bank analysis of those needs. It will finance expenditures needed to maintain economic stability and sustain growth, address volatility, and protect the poor. Operational responses will include funding budget expenditures in infrastructure services, education, and health and social safety nets.