Arriving 27 billion dollars in two years from the World Bank. This time, however, the recipients of aid are not countries in crisis like Greece or Portugal, but all of them the emerging economies of Europe and Central Asia which have been most affected by the eurozone crisis.
"While the effects on Western Europe's major economies are receiving worldwide attention, the crisis is also affecting people in emerging European countries, particularly the poorest in Central and South-Eastern Europe," said the president of the Washington-based institution, Robert Zoellick -. The World Bank group increases the financing available for the region so that the countries of the area can count on these resources to face the crisis”.
A note from the institute explains that the eurozone debt crisis is infecting emerging Europe mainly through three channels: finance, trade and remittances from migrant workers. The importance of each of the three channels varies from country to country.
The support of the World Bank will be used mainly in three sectors: structural reforms and private enterprise (to maintain investments), jobs and incomes, consultancy and financial support for countries with a more fragile banking system, protection of the weakest with a strengthening of the social safety net. In parallel, the World Bank announces its commitment alongside other international institutions, in the new Vienna initiative to convince Western European banks to stay in Eastern Europe and continue to lend in the area.
