The World Bank has announced new financing for Ukraine in the amount of $3.39 billion under a program aimed at stimulating private sector financing and attracting skilled labor to the labor market, UNN reports.
Details
As reported in a press release dated June 22, the World Bank's Board of Executive Directors approved the first Development Policy Operation "Jobs in Ukraine and Private Sector Growth" (DPO) to support the reform program of the Government of Ukraine, aimed at creating conditions for attracting private financing and investment, addressing labor shortages, and deepening cross-border market integration.
This first operation under a series of two development policy programs will provide financing in the amount of $3.39 billion
As stated, this includes a World Bank loan of $1.04 billion, backed by $540 million in credit enhancement from the ADVANCE Ukraine Trust Fund with support from the Government of Japan and $500 million in guarantees from the Government of the United Kingdom, as well as a $2.35 billion grant from the Financial Intermediary Fund for Resource Mobilization for Investment in Strengthening Ukraine (F.O.R.T.I.S.).
"Despite extremely challenging conditions, Ukraine is steadily advancing in implementing its reform program, creating conditions for private investment and job creation, and consistently strengthening markets and institutions to realize its aspiration for European Union membership," said Bob Saum, World Bank Regional Country Director for Eastern Europe. "This DPO reflects the significant progress Ukraine has made. The World Bank Group and our partners stand ready to provide continued support for Ukraine's reform program, its EU accession aspirations, and its efforts to build a more prosperous future."
The program supports Ukraine's private sector-led recovery by promoting reforms in three areas:
- creating conditions for private sector financing and investment, including by reforming the regulatory framework governing public-private partnerships and financial intermediation for small and medium-sized enterprises, as well as through efforts to advance the privatization program;
- attracting skilled labor to jobs through reforms to modernize housing policy, develop entrepreneurship among veterans, encourage women's participation in the labor market, and reduce skills mismatches;
- promoting cross-border market integration by increasing transparency of payments to support agriculture, integrating electricity market institutions with the EU, and aligning environmental monitoring requirements.