Today, the World Bank's Board of Directors approved a $1.5 billion Development Policy Loan (DPL) for Ukraine. The funds will be used to restore the Ukrainian economy and finance priority social and humanitarian expenditures. This was reported by the Ministry of Finance, according to UNN.
Given the challenges posed by Russia's full-scale armed aggression, meeting the needs of our citizens is a priority for the Ukrainian Government. The funds raised will be used to support the State Budget of Ukraine, restore the economy and finance priority social and humanitarian expenditures.
Details
It is noted that these funds will be provided under the guarantees of the Government of Japan through the World Bank Trust Fund (ADVANCE Ukraine) in the amount of $984 million and under the guarantee of the United Kingdom in the amount of $516 million.
The money is expected to be transferred to the State Budget of Ukraine by the end of March this year.
The Minister of Finance noted that the World Bank, Japan and the United Kingdom are key partners of Ukraine who have been providing unprecedented support since the first days of Russia's full-scale invasion of our country.
In order to reduce the cost of servicing Ukraine's loan obligations under the DPL2024 loan in the coming years, the DPL Loan Agreement provides for the following from Japanese funds
The DPL project is not only about supporting the state budget, but also increasing the potential for economic development by increasing productivity, capital accumulation and access to export markets, as well as creating a macro-financial policy favorable to economic development. Ukraine has taken all these measures to implement the necessary reforms that will allow Ukraine to accelerate its European integration path and promote economic growth.
It is noted that the main areas of reforms include improving corporate governance, stimulating renewable energy generation, introducing agricultural notes as a new tool for farmers to obtain financing, strengthening the financial sector by improving business access to finance (under the Affordable Loans 5-7-9 program). As well as implementing EU customs and tax experience into Ukrainian legislation, improving fiscal policy and capital market regulation, ensuring transparency and accountability of customers in the e-procurement system.
Following the approval of the loan by the World Bank's Board of Directors, Minister of Finance of Ukraine Sergii Marchenko and World Bank Regional Director for Ukraine, Belarus and Moldova, Europe and East Asia Arup Banerjee signed the relevant Loan Agreement.