The World Bank announced Tuesday afternoon that it would fund an initial $12 billion in financing to combat the Covid-19 outbreak that is threatening to plunge the global economy into recession. The virus has now spread to 60 countries, infecting more than 92,000 people, resulting in 3,100 deaths.
World Bank President David Malpass said there are still "many unknowns" about the fast-spreading virus. Malpass said more aid could be required in the future.
"We are working to provide a fast, flexible response based on developing country needs in dealing with the spread of COVID-19," he said."This includes emergency financing, policy advice, and technical assistance, building on the World Bank Group's existing instruments and expertise to help countries respond to the crisis."
He called on the global community to coordinate efforts to limit the transmission of the virus, indicating that the faster everyone acts, the more lives that can be saved.
Not sure if the World Bank is living up to "whatever it takes" or "throw the kitchen sink at it." Surely, this isn't the global fiscal stimulus investors were hoping for as stocks puke late in the session on Tuesday.
It's almost certain that many more tranches of funding will be needed. This could be round one...