The Diplomat
The Cabinet of Ministers yesterday authorized a Spanish contribution of €47.91 million in 2022 to the World Bank Group’s Multi-Donor Trust Fund for co-financing of public expenditures necessary for the maintenance of administrative capacity in Ukraine (MDTF- PEACE).
The proposed financial contribution to the World Bank Group’s PEACE Fund will help “alleviate the consequences of the war and collaborate in the expected reconstruction of Ukraine based on sustainable development,” the Government said. “Spain’s commitment to Ukraine and to multilateral financial institutions is shown through Spain’s participation in this trust fund, while reaffirming once again the responsibility acquired as a developed economy before these institutions and the most vulnerable countries,” it added.
Spain has deployed a humanitarian aid package aimed at covering the urgent needs of the Ukrainian population both within the country and in those countries receiving refugees. “However, the conflict has given rise to a series of issues not only humanitarian, but also related to the need for budgetary support to the Ukrainian authorities in the maintenance of the administration and essential services, such as supplies (electricity, water or gas), education, health, maintenance of production and export of agricultural products, among others,” added the Executive.
Financial contributions are being channeled through various international institutions and organizations of which Spain is a member, since multilateral financial institutions are one of the most efficient instruments for helping the most vulnerable economies.
The World Bank Group, through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), provides budgetary support with these resources. Within this framework, the IBRD and IDA have signed an agreement with Ukraine establishing this dedicated MDTF as a source of additional funding directly to Ukraine’s budget to cover recurrent costs to maintain essential services.
