Finance Minister welcomes World Bank’s $14 bn COVID-19 package

TDT | Manama

Bahrain’s Finance Minister yesterday welcomed the World Bank Group’s decision to increase its COVID-19 response package to $14 billion.  The package aims at strengthening national systems for public health preparedness, including for disease containment, diagnosis, and treatment, and support the private sector. 

Shaikh Salman bin Khalifa Al Khalifa said the package will assist countries in their effort to prevent, detect and curb the spread of COVID-19.  The Finance and National Economy Minister was speaking on behalf of the Arab and Maldives Group countries, represented by Bahrain, during a virtual meeting of the “Development Committee” on the sidelines of the Spring Meeting of the Boards of Governors of the World Bank Group (WBG) and the International Monetary Fund (IMF).

WBG, Shaikh Salman said, is capable of playing an influential role in reducing the social and economic effects of COVID-19 by developing policies that would restore the pace of robust and comprehensive global economic growth. Shaikh Salman also urged the World Bank to deepen its analysis, while determining spending priorities and policies to ensure the achievement of sustainable development.  

The Finance Minister said the Arab Group welcomes the call to reduce the debt burden on low-income countries and continue implementing the multi-dimensional approach followed by the World Bank, including helping countries to improve public debt management capabilities, increase debt transparency and enhance financial sustainability, especially for countries in regions with fragile situations, and are affected by political conflicts. In its communiqué, the “Development Committee” stressed the importance of implementing directed substantive measures at the level of public finance, monetary policy and financial markets to support affected individuals and businesses as quickly as possible.

The Development Committee also called on the World Bank Group and the International Monetary Fund to continue supporting the development process to confront the virus and mitigate its health, social and economic impacts in various parts of the world. The additional $2 billion builds on the announcement of the original response package on March 3, which included $6 billion in financing by the World Bank to strengthen health systems and disease surveillance and $6 billion by IFC to help provide a lifeline for micro, small and medium-sized enterprises, which are more vulnerable to economic shocks.