The World Bank is making $27 billion in funding available over the next two years for countries of emerging Europe and Central Asia impacted by the euro zone crisis.
“While the effects of the euro zone crisis on the largest economies of Western Europe receive most of the world’s attention, the crisis is also hurting people in emerging Eastern European countries, particularly the poorest in Central and Southeastern Europe,” said World Bank President Robert B. Zoellick.
The purpose of extending these funds is to ensure that “those countries can rely on these resources to weather the crisis.”
The World Bank considers that the euro zone debt crisis is harming the this vast region — which extends from Budapest to the Chinese border — through three channels: finance, trade and immigrant workers’ wages.
Therefore, the institution says its response in this region will focus on structural reforms and support for the private sector to keep investment, incomes and payrolls from any dramatic contraction.
Plus, they also want to give advisory and financial support and protect the most vulnerable through strengthening social safety nets.