The World Bank Group has expressed its readiness to deploy about $ 150 bn over the next 15 months to stimulate economic recovery of countries affected by the Coronavirus pandemic .
The Coronavirus pandemic had led to unprecedented disruptions to global supply chains , sharp drop in global crude oil prices , turmoil in global stock and financial markets, lockdown of large swaths movements of persons in many countries , among others.
These outcomes have had severe consequences on households’ livelihoods and business activities, resulting from drop in global demand , declined consumer confidence and slowdown in production .
The World Bank Group President David Malpass in his remarks from the G20 Finance Ministers conference call on the COVID – 19 pandemic said these are difficult times for all, especially for the poorest and most vulnerable .
For the World Bank Group , he said the first goal is to provide prompt support during the crisis , based on a country’ s needs .
He noted that it was vital for governments of countries affected by the pandemic to shorten the time of recovery and create confidence that the recovery can be strong .
Malpass said the bank is currently restructuring existing projects in 23 countries .
Many of these projects restructurings, according to him , would be made through the use of contingent emergency response components .
He said the bank is also preparing projects in 49 countries through a new fast – track facility .
He said the final decisions on 16 out of these 49 country programmes would be made this week expected this week.
Beyond the severe health impact from the pandemic , we should expect a major recession of the global economy .
The World Bank boss said , “ We are working to provide a fast response , utilizing all our available instruments.
“ Countries need to move fast to boost health spending, strengthen social safety nets , support the private sector and counter financial- market disruption .
“ Countries will need to implement structural reforms to help shorten the time to recovery and create confidence that the recovery can be strong .
He added , “ For those countries that have excessive regulations, subsidies, licensing regimes , trade protection or litigiousness as obstacles , we will work with them to foster markets , choice and faster growth prospects during the recovery.
“ The resources to address the problems I ’ ve discussed are substantial . The World Bank Group , including International Finance Corporation and Multilateral Investment Guarantee Agency, could deploy as much as $ 150 bn over the next 15 months. ”
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