Ministerial Roundtable Discussion for Support to Ukraine
Ministerial Roundtable Discussion for Support to Ukraine
00:00 Welcome and opening remarks by David Malpass, WBG President
01:12 Speech delivered by Ukraine’s President Volodymyr Zelensky
14:11 Remarks by Denys Shmyhal, Prime Minister of Ukraine
27:22 The support from the World Bank Group to Ukraine
31:53 Remarks by Kristalina Georgieva, IMF Managing Director
Speakers
RESOURCES
Website
News
- War in the Region: Europe and Central Asia Economic Update Spring 2022 (10 April 2022)
- Joint Statement of Heads of International Financial Institutions with programs in Ukraine and neighboring countries (17 March 2022)
- World Bank Announces Additional $200 Million in Financing for Ukraine (14 March 2022)
- World Bank Mobilizes an Emergency Financing Package of over $700 million for Ukraine (7 March 2022)
- Joint IMF-World Bank Group Statement on the War in Ukraine (1 March 2022)
- World Bank Group Stands with Ukraine and its People (24 February 2022)
- Readout from World Bank Group President David Malpass’s Meeting with Volodymyr Zelensky, President of Ukraine (19 February 2022)
Read the transcript
- 00:00 Good afternoon.
- 00:02 I'd like to welcome everyone joining us here at the World Bank Group headquarters
- 00:06 in Washington, DC,
- 00:07 as well as the global audience joining us via live stream.
- 00:12 I've been deeply horrified and shocked
- 00:15 by Russia's invasion of Ukraine,
- 00:17 the atrocities committed against the civilian population,
- 00:21 and the loss of life and livelihoods for millions of Ukrainians.
- 00:25 For nearly two months,
- 00:27 the people of Ukraine have demonstrated incredible resilience and bravery.
- 00:32 Ukraine's needs are immense and evolving.
- 00:35 We're here today as part of our continuing assessment of those needs,
- 00:39 recognizing that the situation on the ground changes by the hour.
- 00:43 We're honored to have his Excellency,
- 00:46 President Volodymyr Zelensky, joining us live from Ukraine.
- 00:51 President Zelensky has demonstrated powerful leadership throughout the war.
- 00:57 Mr. President,
- 00:58 you and your nation have shown strength, tenacity and heroism
- 01:03 in the face of aggression.
- 01:05 President Zelensky, the floor is yours.
- 01:14 Thank you, Mr. President.
- 01:17 Dear President David Malpass and
- 01:23 dear Managing Director of IMF, Kristalina Georgieva.
- 01:29 I would like to greet all those who are attending this historical meeting
- 01:36 of the World Bank.
- 01:37 And...
- 01:40 a few days ago, I spoke with Ms. Kristalina Georgieva.
- 01:43 and I heard very important words from her about Ukraine.
- 01:47 We talked about life in our city, Kharkiv.
- 01:52 It's the biggest city of Eastern Ukraine.
- 01:55 The Russian troops are bombarding and firing at it
- 01:59 for some weeks.
- 02:01 And those parts where Russian weapons can reach,
- 02:05 over 1000 houses have been ruined.
- 02:08 Russian artillery, Russian missiles,
- 02:10 Russian air bombs do not discriminate between who to kill
- 02:15 and which buildings to blow up or set on fire.
- 02:19 In downtown Kharkiv and at the side streets,
- 02:23 it's equally dangerous and people can die from Russian strikes.
- 02:29 But you should know, our people,
- 02:30 the residents of Kharkiv, even during the war,
- 02:33 during those firing strikes, Kharkiv has remained a functioning city.
- 02:39 And Ms. Kristalina pointed out that, despite everything,
- 02:43 they are planting flowers in Kharkiv.
- 02:46 They are trimming the trees,
- 02:50 cleaning the streets and keeping the city in a good shape.
- 02:54 That's what our Kharkiv is like.
- 02:55 That's what our country is like.
- 02:57 We were able to liberate three northern provinces of the country
- 03:02 from the occupiers.
- 03:03 That's Lviv, Chernihiv and Zhytomyr.
- 03:05 And we are doing everything now to bring normal life back there.
- 03:09 Russian troops have destroyed or damaged tens of thousands of buildings.
- 03:16 Almost all objects of social sphere have been burned down or require fixing.
- 03:24 Thousands of people have been killed.
- 03:26 Most businesses have been destroyed.
- 03:29 We are bringing back electricity, communication lines, water supplies.
- 03:34 We are renewing transportation lines,
- 03:37 building up temporary bridges on the rivers.
- 03:41 We are continuing building social administrative services.
- 03:45 And every day we remove mines and booby traps left by the Russian military.
- 03:55 Imagine they were even putting those mine traps in people's homes,
- 04:02 in home equipment, and even in the agricultural fields.
- 04:10 But despite all this, our people are coming back home.
- 04:13 Ukrainians are doing everything in order to bring back normal life,
- 04:16 because that's who we are, Ukrainians.
- 04:19 In the east of our country, in Donbas in the south,
- 04:23 the situation is even harder.
- 04:25 And right now, active combat action is going on.
- 04:29 Russia is still trying to build up a new and atrocious offensive operation.
- 04:36 I can give you just one number
- 04:38 so you understand the scale of our experiences.
- 04:42 Owing to bombardment and fire strikes,
- 04:46 there have been 1141 educational institutions
- 04:52 ruined or damaged.
- 04:54 That includes schools, nursery schools, universities all across the country.
- 05:01 Not every country of the world has so many institutions of education
- 05:07 as Russians have ruined in Ukraine.
- 05:09 And if we are talking about schools and colleges,
- 05:13 you can imagine how many other places that have been ruined.
- 05:18 That's hospitals, infrastructural objects, businesses, etc.
- 05:23 Russian investment has given tremendous damage.
- 05:29 At the very preliminary evaluation,
- 05:33 Ukraine has lost 550,000 billions in the value of the destruction.
- 05:39 Russia has blocked our ports in the Black Sea and the Sea of Azov.
- 05:44 This has reduced our exports,
- 05:47 including agrarian exports, and it already impacts world food safety.
- 05:52 A recent UN report
- 05:57 said that 47 million people in 81 countries of the world
- 06:02 will starve because of growth of prices for food.
- 06:09 And this is not about physical shortage of food.
- 06:12 In many countries of Africa and Asia,
- 06:14 this will also cause political instability
- 06:17 and maybe a new migration crisis.
- 06:20 People will look for the guilty,
- 06:23 those who are guilty of that, and they will go out on the streets,
- 06:26 They will look for a way to save themselves.
- 06:29 We are doing everything we can in order to build up the export of our products.
- 06:34 And we have started sowing in the fields as much as we can.
- 06:42 But nobody in the world can be sure
- 06:44 that we'll be able to guarantee food security
- 06:48 as long as this war is going on.
- 06:50 To stop the war now and to liberate our territory from the Russian invaders
- 06:55 is the only secure way to stop the development of a food crisis.
- 07:02 Russian military are aimed at destroying all objects in Ukraine
- 07:07 that can serve as an economic base for life.
- 07:11 That includes railroad stations, food warehouses,
- 07:16 oil refineries, etc.
- 07:21 At this time, we need up to $7 billion each month
- 07:27 to make up for the economic losses.
- 07:32 And we will need hundreds of billions of dollars to rebuild all this later.
- 07:37 I'm sure that all of you have seen those calculations.
- 07:40 We have to speak honestly with you and say
- 07:44 that Russia is using aggressive methods in the world market
- 07:50 while fighting this war.
- 07:52 They are creating such conditions, so not only the food market,
- 07:55 but also the fuel market and other raw materials markets
- 08:00 would face instability.
- 08:01 Russia has provoked the growth of prices
- 08:06 for energy resources in Europe and the whole democratic world.
- 08:14 They are slowing the sales,
- 08:19 especially for natural gas,
- 08:21 to create painful prices for European consumers.
- 08:25 This and other examples show that Russia can no longer be considered
- 08:30 a normal and reliable supplier of energy resources,
- 08:34 a normal and reliable trade partner.
- 08:37 We all can implement such decisions,
- 08:40 which will not only stop the aggressive intentions of Russia,
- 08:45 and who not only support Ukraine in this war,
- 08:48 but will also show all potential aggressors in the world
- 08:52 that if you create problems for other nations,
- 08:57 this means you will create problems for yourself.
- 09:00 Because if we don't do that, then millions and millions of people in the world
- 09:05 will suffer more than once from aggressive action of some countries.
- 09:09 So what steps are needed now?
- 09:13 Right now.
- 09:14 First is immediate support for Ukraine
- 09:17 so that the leadership of Russia know
- 09:20 that war will not allow them to implement any of their aggressive goals.
- 09:27 Details of such financial support, I'm sure, will be presented
- 09:31 by our Prime Minister and Minister of Finance,
- 09:33 who are present at this meeting.
- 09:35 We must do everything so that Ukrainians
- 09:38 have everything they need for survival and life,
- 09:42 even despite the war.
- 09:44 And as I mentioned the city of Kharkiv at the beginning,
- 09:47 and this applies to all other cities and communities of Ukraine.
- 09:51 Number two. We need immediately to exclude Russia
- 09:56 from all international financial institutions,
- 09:59 IMF, World Bank, and others.
- 10:02 That's not the place for a country
- 10:04 that is trying to build the life of a neighborly nation.
- 10:09 Number three. A special tax on war is needed.
- 10:13 Russia and, after that, any other aggressor,
- 10:17 must pay for destroying global stability.
- 10:20 Such tax must be applied to all, without exception,
- 10:26 trade operations with the Russian Federation,
- 10:29 or with Russian companies, or all export and import operations.
- 10:35 For all financial operations that are not blocked yet,
- 10:39 the costs from that war tax
- 10:42 must be used to help Ukraine
- 10:46 to renew everything that Russia has destroyed.
- 10:50 And if this tax is applied to another aggressor,
- 10:54 then those costs must be directed to the victims of that war.
- 10:59 The world needs...
- 11:02 needs a working effective instrument to react to destructive action
- 11:08 and to all those who don't want to support collective security.
- 11:14 I'm sure that such a war tax can be a tool of that kind.
- 11:18 Number four. Every country of the world
- 11:20 must immediately prepare to break up all relations with Russia.
- 11:25 No one should be dependent
- 11:27 on the political whims of the leaders of that country.
- 11:32 If the world is prepared to isolate Russia completely,
- 11:36 then the Russian leadership will have a motivation to avoid any war.
- 11:41 Number five.
- 11:43 Those assets of the Russian state that already have been blocked
- 11:47 and of the Russian elite,
- 11:49 those are not all their assets that we know.
- 11:53 This blocking has to be continued.
- 11:57 Those efforts have to be continued, and that's not a goal in itself.
- 12:01 Those monies that were blocked and frozen
- 12:05 have to be used to rebuild Ukraine after the war,
- 12:08 as well as to pay for the losses cost to other nations.
- 12:15 If starvation started
- 12:20 in some regions due to Russia's war,
- 12:23 those frozen assets can be used to pay for the assistance and compensation.
- 12:30 We must use all our strength, so that Russia feels
- 12:34 that is being punished for this war and also feels how big
- 12:39 is the need to bring back peace, including for Russia itself.
- 12:44 So by helping us,
- 12:52 we are helping to stabilize the world in general,
- 12:55 and fix market problems,
- 12:59 including beginning with the food market.
- 13:01 And with your support, with your financial support,
- 13:06 we will quickly rebuild our nation.
- 13:09 That means new opportunities, business from different countries,
- 13:13 for not just economic growth, but also this will be a specific proof
- 13:17 that global financial institutions
- 13:20 are capable to work in the interests of rank and file people
- 13:25 and of mankind in general.
- 13:27 I would like one of our next meetings to take place in Ukraine
- 13:32 in one of our cities that were rebuilt with your support,
- 13:37 maybe in Kharkiv.
- 13:40 Thank you for your attention and glory to Ukraine.
- 14:04 [David Malpass] I appreciate your participation in today's meeting.
- 14:09 Next, I would like to welcome His Excellency Denys Shmyhal,
- 14:15 Prime Minister of Ukraine.
- 14:18 And Prime Minister, the floor is yours.
- 14:22 [Denys Shmyhal] Thank you very much.
- 14:24 Dear President Malpass, dear Managing Director,
- 14:27 Kristalina Georgieva, your Excellencies, dear colleagues.
- 14:31 I'm sure you understand the current situation in Eastern Europe.
- 14:37 And what exactly is Russia doing here in Ukraine?
- 14:42 Firstly, they destroy Ukraine's economic potential.
- 14:46 As President Zelensky told, all types of infrastructure,
- 14:51 all types of enterprises are subjected to massive attacks,
- 14:55 airstrikes and artillery fire.
- 14:58 Not only the military, as Russia's representative says,
- 15:02 but everything from bakeries to food warehouses
- 15:08 to machine-building enterprises and petroleum storages.
- 15:12 Everything is bombed, is under rocket strikes.
- 15:16 Secondly, the Russian military tactic is aimed
- 15:18 at creating a migration crisis in Europe.
- 15:22 Russian troops are deliberately destroying people's homes.
- 15:27 There are dozens of Ukrainian cities and communities
- 15:30 that have been almost completely destroyed by the Russian's fire.
- 15:33 Mariupol is just one example,
- 15:37 but one, but not last.
- 15:40 Volnovakha, Izyum and other cities suffered comparable large-scale destructions.
- 15:46 Other cities such as Kharkiv, Chernihiv, Irpin, Borodyanka,
- 15:50 have been turned into ruins.
- 15:53 Thirdly, Russia is blocking our seaports.
- 15:56 No other state has posed such a threat which indicates
- 16:00 that if our seaports stay blocked, we cannot export agricultural products.
- 16:06 If we cannot export agricultural products,
- 16:08 it means there will be a threat of food crisis at least,
- 16:13 or even large-scale political destabilization
- 16:16 in dozens of countries in North Africa, Asia and other regions at worst.
- 16:23 What are the consequences of Russia's aggression today?
- 16:27 Donbas as one of the key industrial regions of Eastern Europe
- 16:31 is absolutely destroyed by Russia.
- 16:34 Black Sea and Azov seaports of Ukraine are blocked.
- 16:38 Dozens of thousands of Ukrainians are dead.
- 16:42 Almost 12 million of Ukrainians were forced to leave their homes.
- 16:47 About 15 million of them left...
- 16:51 About five million of them left Ukraine.
- 16:54 For now, 220 000 people lost their homes
- 16:59 because 7000, as President Zelensky mentioned, residential buildings
- 17:06 were damaged or destroyed completely.
- 17:10 Hostilities and bombing of our cities
- 17:14 by Russian military forces still continue.
- 17:17 So, the list of damages and destroyed property
- 17:21 will only be increasing day by day.
- 17:24 Over 120 000 sq. mi
- 17:29 of Ukrainian territory requires mine cleaning.
- 17:32 It's a huge territory.
- 17:35 Ukraine's GDP can drop by 30% to 50% during this year
- 17:40 according to prior estimates by experts
- 17:42 and by international financial organizations.
- 17:46 Our prior analysis has demonstrated
- 17:49 that direct and indirect losses because of the war
- 17:53 amount to more than 560 billion of US dollars.
- 17:59 And if we do not stop this war together, the losses will increase dramatically.
- 18:06 Infrastructure losses alone are already higher than 100 billion dollars.
- 18:13 In March this year, more than 60% of Ukrainian enterprises
- 18:17 were stopped completely or partially.
- 18:20 One of the biggest Ukrainian steel production plant in Mariupol
- 18:24 was almost destroyed by Russian bombs.
- 18:27 And this is just one of the hundreds of enterprises and facilities
- 18:32 which are no longer operational
- 18:34 after missile and air bomb strikes by Russia.
- 18:38 Obviously, Ukraine's efforts only
- 18:41 are not enough to come back to normal life,
- 18:44 after such a horrible aggression from Russia.
- 18:47 And it is also obvious that the recovery of Ukraine after this war
- 18:53 will be a must to recover global security.
- 18:57 Russia as well as all other potential aggressors all around the world
- 19:01 must understand that their wars will never be able to destroy the life of any nation.
- 19:07 They must see that everything they destroy will be renewed immediately
- 19:11 and will be compensated and recovered.
- 19:15 It should be one of the safeguards from the military aggression
- 19:20 in the future.
- 19:22 If every potential aggressor knows
- 19:25 that the civilized world will help every nation
- 19:31 which has become or may become a victim of the war,
- 19:35 then the motivation to start a war will be decreased.
- 19:39 That is why the real support of Ukraine will translate into a direct benefit
- 19:44 for each of our countries, for the civilized world,
- 19:49 and for global security.
- 19:51 Our public and our civil institutions in Ukraine have already demonstrated
- 19:56 that President Vladimir Zelensky and the government of Ukraine
- 19:59 are ensuring their right way
- 20:02 the right way to move forward in Ukraine's Development.
- 20:05 Sustainability of our institutions,
- 20:07 capability of our State to regroup at all levels,
- 20:12 defending our nation from the Russian invasion
- 20:15 as well as stability of our financial system,
- 20:19 have proven the right track of governing Ukraine, our country.
- 20:24 We have mobilized and allocated all the international resources very quickly.
- 20:30 State budget revenues in March were 100%
- 20:33 in line with the budget plan before the war.
- 20:36 To avoid the total collapse of business,
- 20:38 we have simplified taxation and customs, but the war is still going on
- 20:43 and we expect in April state budget will be performed at only 50%.
- 20:50 And to balance state budget as well as to support small and medium business,
- 20:54 we need additional financial resources.
- 20:57 We finance our security and defense sector.
- 21:01 We have launched a new state program
- 21:04 to support people who lost their job, incomes and homes.
- 21:10 Despite all difficulties,
- 21:13 our country is performing all social obligations,
- 21:16 pensions, salaries, social payments,
- 21:19 and it all costs about US$7 billion per month for our budget.
- 21:26 We do our best to prevent food crisis and political destabilization
- 21:30 in the African countries and other macro regions of the world.
- 21:35 For example, the Ukrainian share in the global export
- 21:40 is 10% in wheat,
- 21:42 14% in corn and 47% in sunflower oil.
- 21:48 Some of those countries are especially vulnerable.
- 21:52 For example, Egyptian food market is 100%
- 21:56 dependent on Ukrainian and Russian wheat supplies.
- 21:59 Despite the war and blockages of the sea ports,
- 22:03 Ukrainian farmers continue to work and a sowing campaign is underway,
- 22:08 and we expect to farm about 80%
- 22:13 of the total farming area compared to last year's.
- 22:17 We create new export logistics
- 22:20 and this also requires additional finances
- 22:24 and special technological solutions.
- 22:28 So as you can see, the scale of the challenges is very serious
- 22:33 in all spheres of economic and social life in Ukraine.
- 22:37 But taking into account the additional environmental risks because of the war
- 22:44 in the industrial zones,
- 22:45 flooded coal mines, intervention in the Chernobyl zone,
- 22:51 then the scope of additional support needed will increase dramatically.
- 22:57 In a short-term perspective, we need a financial bridge
- 23:01 for up to 5 months with US$4-5 billion per month.
- 23:08 In a long-term perspective, we need a recovery plan for Ukraine
- 23:11 similar to Marshall Plan for Europe after Second World War.
- 23:15 According to the order of the President of Ukraine, Volodymyr Zelensky,
- 23:19 The government of Ukraine began to work on the United 24 Recovery Plan
- 23:26 and established the United 24 Recovery Fund.
- 23:30 The goal of the plan is not to recover the destroyed economy,
- 23:35 but to build a new economy in Ukraine
- 23:37 which will be fully integrated into the EU.
- 23:41 As of today, such recovery, reconstruction and transformation
- 23:46 will cost about US$600 billion.
- 23:50 But first we have to stop the war.
- 23:53 We have to bring peace back to Ukraine and put the Russian Federation to justice.
- 23:58 That is why I call all of our international partners
- 24:02 to be focused on three particular instruments.
- 24:05 First, supplying ammunition weapons to Ukraine.
- 24:11 As President of Ukraine, Volodymyr Zelensky said,
- 24:14 "Freedom must be armed no worse than tyranny."
- 24:18 Second, we ask to put more sanctions pressure on Russia
- 24:22 because only this can force them to seek peace.
- 24:26 It is clearly important.
- 24:28 It is crucially important to impose
- 24:31 complete blockage of the Russian banking sector,
- 24:34 ban their energy exports,
- 24:36 including oil and nuclear fuel, and in future, gas.
- 24:41 Third, financial support of Ukraine.
- 24:43 The tyranny must clearly see that the Democratic world
- 24:47 will not leave our nation, which is fighting for freedom,
- 24:53 without support.
- 24:54 We need to have all necessary financial resources,
- 24:57 not only for defense,
- 25:00 but for the functioning of all public and social institutions
- 25:04 and to guarantee return of internally displaced persons.
- 25:10 We are in the dialogue with all who can support Ukraine.
- 25:13 We are grateful to all our international partners
- 25:17 to World Bank, the IMF, the IBRD, the EIB, the European Union,
- 25:24 G7 countries, other European, Middle East, and Asian countries
- 25:29 for providing support to Ukraine.
- 25:31 I have sent letters to many of my colleagues and have asked them
- 25:35 to provide 10% of SDRs to support Ukraine financially.
- 25:40 For example, Canada has agreed to provide
- 25:42 CAD 1 billion in SDRs
- 25:45 to the special administrative account created by IMF.
- 25:48 Thank you for this.
- 25:49 We hope that all other partners will follow this example.
- 25:54 The World Bank also created a trust account for donors
- 25:58 and we call our partners to support us through this World Bank account.
- 26:07 We are grateful for loans, guarantees and grants provided.
- 26:12 In the government of Ukraine, we believe
- 26:14 that this military financing will continue.
- 26:18 While I'm talking to you, Russia is attacking my country
- 26:22 to undermine resilience of the Ukrainian nation.
- 26:26 Ukrainian people have proven
- 26:28 that they are ready to fight as much as it is needed.
- 26:34 We will fight bravely and wisely
- 26:37 to defend our nation and freedom of the European continent.
- 26:41 But to win the war, we need your support.
- 26:45 That is why I appeal to all of you on behalf of those who fight for Ukraine,
- 26:50 those who work hard now for our victory and survival of the Ukrainian nation.
- 26:55 I appeal to you by...
- 26:57 I appeal to you with my request,
- 26:59 help us protect freedom.
- 27:03 You have all the resources needed for this.
- 27:06 We need decisions.
- 27:07 Slava Ukraini! Glory to Ukraine! And thanks to you all.
- 27:11 Thank you so much.
- 27:14 [Applause]
- 27:21 [David Malpass] Thank you very much, Mr. Prime Minister.
- 27:24 We've been honored to have you here today,
- 27:27 and we're also honored to have Finance Minister Marchenko
- 27:30 and Governor Shevchenko here with us,
- 27:34 and finance ministers from many countries around the world.
- 27:37 And we appreciate everyone's participation.
- 27:41 And I want to say a few words of thanks
- 27:44 to all those that have contributed already.
- 27:48 But let me repeat, on behalf of the World Bank Group,
- 27:51 we have been deeply horrified and shocked by Russia's invasion of Ukraine,
- 27:57 the atrocities committed against the civilian population,
- 28:01 and the loss of life and livelihoods for millions of Ukrainians.
- 28:06 The Russian invasion is needlessly taking lives
- 28:10 injuring so many,
- 28:11 and causing massive damage to your economy.
- 28:15 And we appreciate you going through some of that.
- 28:18 We know how painful it is.
- 28:20 War is first and foremost a human tragedy.
- 28:24 The World Bank group has completed an early assessment
- 28:28 of the physical damage.
- 28:30 It puts the cost in terms of buildings and infrastructure.
- 28:34 The narrow cost at roughly US$60 billion.
- 28:37 That doesn't include the growing economic costs to Ukraine's economy.
- 28:43 And also, of course,
- 28:44 the war is still ongoing so those costs are rising.
- 28:47 Ukraine's government and state-owned enterprises
- 28:50 face a large non-military fiscal deficit and debt burden.
- 28:56 Since the invasion, the World Bank Group
- 28:59 has provided fast dispersing financial support
- 29:02 to help the government provide critical services,
- 29:04 pay wages for hospital workers, public servants and the elderly.
- 29:09 Through IFC,
- 29:10 we've provided immediate working capital
- 29:12 for companies providing supplies to Ukraine.
- 29:16 We've now mobilized more than US$3 billion for Ukraine
- 29:19 to support the continuation of essential government services.
- 29:23 [David Malpass] This was made possible,
- 29:25 and I want to thank the grant contributions through our multi-donor trust fund
- 29:30 from the United States, the United Kingdom, Norway, Denmark,
- 29:35 Austria, Latvia, Lithuania, Iceland,
- 29:38 and guarantees from the United Kingdom, Netherlands and Sweden,
- 29:43 and parallel financing from Japan.
- 29:46 These announcements were still being made today
- 29:49 and I know many other countries are also putting money directly
- 29:54 into the support effort for Ukraine.
- 29:57 Our mechanisms are providing rapid, targeted and secure delivery
- 30:03 of the support to Ukraine in the challenging times.
- 30:06 The priority should be to fill Ukraine's current financing needs
- 30:11 in a way that minimizes its future debt burden,
- 30:14 so grant contributions will be very important.
- 30:18 Our MDTF is one mechanism that can be utilized,
- 30:22 and I also would like to acknowledge complementary approaches,
- 30:27 including the IMF's administered account,
- 30:30 the European Union Solidarity Trust Fund, EBRD's resilience package.
- 30:36 It will be important for all partners
- 30:39 to continue coordinating their support for Ukraine's budget needs.
- 30:44 We're working toward three phases of the recovery effort
- 30:50 of relief, recovery, and resilience,
- 30:52 and I know many around the table are working in those efforts.
- 30:57 As the war continues,
- 30:58 we'll work to build confidence in Ukraine's financial,
- 31:03 monetary and fiscal institutions,
- 31:07 fostering currency stability as we go forward
- 31:11 in the six to eight months after peace.
- 31:13 We believe the reconstruction of essential infrastructure connectivity
- 31:18 such as transport, power, heating and digital
- 31:22 should be urgently addressed
- 31:24 and then over the medium term, reinforcing the macro fiscal capacity,
- 31:28 rebuilding cities and households,
- 31:31 and strengthening the agriculture and business sectors.
- 31:34 The war has been devastating for Ukraine's people and its economy
- 31:37 and it must end now.
- 31:40 Rebuilding will take hard work, determination and struggle,
- 31:45 but I remain optimistic.
- 31:47 With our collective support, Ukraine can achieve a brighter future.
- 31:52 With that, I want to say thank you and turn to my friend and colleague,
- 31:56 IMF Managing Director, Kristalina Georgieva,
- 31:59 to give her remarks.
- 32:02 [Kristalina Georgieva] Thank you very much, David.
- 32:05 Thank you for organizing this meeting.
- 32:10 I cannot think of a more important gathering than this one.
- 32:18 Why?
- 32:19 Because the unthinkable happened.
- 32:22 We again have a war in Europe.
- 32:26 We again have refugees in Europe.
- 32:29 Those of us who know well European history, we are horrified for Europe,
- 32:38 but we are horrified for Europe and the world as well.
- 32:44 After the Second World War,
- 32:46 United Nations High Commissioner for Refugees was set up
- 32:52 to help 3 million Europeans still left displaced to go back to their homes.
- 33:01 We have today over 4.5 million Ukrainians outside of Ukraine.
- 33:09 And the data say at least 8 million displaced internally.
- 33:14 So we have a duty to you and we have a duty to ourselves.
- 33:21 And that is what makes this meeting today so important.
- 33:27 I want to thank wholeheartedly Minister Marchenko
- 33:31 for the time he spent with us.
- 33:33 Governor Shevchenko is here.
- 33:37 When we finish the meeting,
- 33:39 I would ask you, how did you manage to come?
- 33:41 But we are so grateful you did.
- 33:44 I want to make four points.
- 33:46 The first one is about the impact of the war on the economy.
- 33:51 As you said, estimates are quite dreadful hours.
- 33:55 We just published on Tuesday, 40% shrinkage of the GDP this year.
- 34:03 It is a very deep contraction
- 34:06 that certainly causes tremendous drain on your resources.
- 34:12 My second point is something that we have been saying
- 34:15 from the very beginning of this war,
- 34:19 how incredibly impressed we are
- 34:23 by the emergency economic and financial policy response
- 34:28 by the Ukrainian authorities.
- 34:31 You've acted decisively
- 34:33 to preserve the availability of foreign exchange reserves
- 34:37 and reduce exchange rate uncertainty.
- 34:41 You have supported financial stability and protected priority budget payments.
- 34:47 And you have ensured that people in Ukraine can still access
- 34:53 the services and the cash they need.
- 34:56 And yes, I can vouch for it.
- 35:01 In the midst of the invasion,
- 35:02 these actions have helped avoid the economic shocks that a company wars,
- 35:07 such as hyperinflation and currency devaluation.
- 35:13 My third point is the importance for this of the financing you,
- 35:22 some of you through us are providing.
- 35:27 And I want to most sincerely salute all the friends of Ukraine
- 35:34 for the generous support you have provided.
- 35:38 Please continue to do so.
- 35:41 Like the World Bank, we have played our role.
- 35:44 We have provided swiftly $1.4 billion emergency financing.
- 35:50 In less than two weeks after the invasion,
- 35:55 we had established the administered account for Ukraine
- 35:58 that would provide donors with secured vehicle for direct financing.
- 36:04 And I want to recognize Canada, as you did, for 1 billion disbursed in this account.
- 36:11 And this is what keeps Central Bank foreign exchange reserves stable
- 36:16 relative to prewar levels.
- 36:19 And on the fiscal side, this is what supplements domestic revenues.
- 36:24 You don't have to go to excessive recourse to monetary financing.
- 36:31 But as important this is, let's be very frank,
- 36:36 it is not enough.
- 36:39 Why?
- 36:40 Because we have in front of us a couple of very difficult months.
- 36:45 Hopefully the war would end.
- 36:49 But holding on your functions as government
- 36:54 until it ends and probably a bit after it ends,
- 36:58 it would need help.
- 37:01 Reserves are under pressure.
- 37:04 Capital outflows can increase
- 37:08 and inflow can shrink further
- 37:11 if your export routes for agriculture products
- 37:16 continue to be compressed.
- 37:20 And in that context, we've worked with you to ascertain what are...
- 37:28 What is the short term financial gap?
- 37:32 There is a great deal of uncertainty, but we do assess it to be
- 37:37 in the order of $5 billion over the next two to three months.
- 37:43 Yes, we do hope that the economy can start functioning
- 37:47 in the part of the country that is not affected.
- 37:50 We actually think you probably are going to see remittances increasing
- 37:55 because, unfortunately, smart Ukrainians are working somewhere else,
- 38:00 but they can then help our families,
- 38:04 but we would really urge us
- 38:07 to work towards this 15 billion over the next three months
- 38:12 to make sure that you can continue to provide the vital government services.
- 38:19 Like David,
- 38:22 I would urge us to seek as much as possible ground financing
- 38:26 or highly concessional financing,
- 38:29 because piling up more debt in Ukraine at this moment of time is just not wise.
- 38:37 It will have to be restructured down the road for sure.
- 38:43 We also have to prepare for the future.
- 38:48 Sergei talked about your dream for Ukraine.
- 38:52 Well, we have to make this dream a reality
- 38:56 and planning early would make it more certain.
- 39:00 You called on us to look into possibility of lending some SDR resources
- 39:07 from countries that have it but don't need it decisively.
- 39:12 Our team is working on it.
- 39:14 It is not a trivial matter. It is not easy.
- 39:16 We will be working with you to make every effort
- 39:21 to make use of a resource that, at this moment, in many countries is idle,
- 39:28 and we can deploy it at very low cost.
- 39:35 I want to conclude with the following.
- 39:42 We have these rare moments in life
- 39:46 when we find who we are,
- 39:50 and this is one of these moments.
- 39:53 Thank you.
- 40:02 [David Malpass] Thank you very much, Kristalina.
About the Spring Meetings 2022
The Spring Meetings bring together leaders from government, business, international organizations, and civil society, along with a diverse group of experts, to discuss global challenges and the path ahead. Watch the replay of our events dedicated to international development.
Apr. 12: Addressing Challenges
Apr. 19: Responding to Global Shocks
Apr. 20: Opening Press Conference
Apr. 20: The Digital Revolution
Apr. 21: Financing Climate Action
Apr. 21: Support to Ukraine
Apr. 22: Fragility
Apr. 22: Preserving Open Trade
Apr. 23: Human Capital
Available with simultaneous interpretation in Arabic, French and Spanish.