World Bank Aware of Risks Related to Ukraine Funding But Passes Them to Nations - Source

WASHINGTON (Sputnik) - The World Bank understands that risks related to the funding of Ukraine are unacceptable and transfers them to interested nations, a source in the Russian Office at the World Bank told Sputnik.

"The World Bank is well aware of all the risks associated with financing of Ukraine, and — given that such risks are unacceptable for the World Bank itself — passes them on to interested countries," the source said.

The official further stated that Japan would cover the losses of the International Bank for Reconstruction and Development (IBRD), including interest payments, if Ukraine defaults.

"In case Ukraine defaults, Japan will fully cover the losses of the IBRD, including interest payments," the source said.

The Board of Executive Directors of the World Bank on Thursday approved a $1.5 billion loan, guaranteed by the Japanese government, for Ukraine to address the needs of displaced people and support reforms to "enhance the transparency and accountability of public resources expenditures."

The loan brings the emergency financing provided to Kiev by the World Bank and individual international donors to $37.5 billion to date, the institution said.