The World Bank has provided Ukraine with more than $2 billion: where will the money go?
Kyiv • UNN
The World Bank has approved a new $1.05 billion DPO operation for Ukraine and an additional $1 billion grant. The funds will be used for economic reforms, railroad development, and renewable energy.
The World Bank has allocated more than $2 billion to Ukraine. This was reported by the World Bank, UNN reports.
Details
The World Bank has approved a new Development Policy Operation (DPO) for Ukraine worth USD 1.05 billion. This initiative is aimed at strengthening the economic policy framework to promote sustainable growth and financial stability of the country.
The operation is being financed through the resources of the International Bank for Reconstruction and Development, enhanced by the support of Japan and the United Kingdom through the special Ukraine ADVANCE Trust Fund. In addition, an additional USD 1 billion is provided as part of a grant from the Financial Intermediation Support Fund for Ukraine.
This second program in a series of two initiatives aims to support the Ukrainian government in implementing important economic reforms. One of the priorities is to increase gross domestic product per capita to bring Ukraine closer to EU levels and strengthen economic self-sufficiency.
The operation covers two main areas. The first focuses on increasing economic potential, in particular through measures in the railway sector, improving its management, boosting investment in renewable energy sources, and optimizing lending in agriculture. In addition, the qualification of personnel in the customs sector is being improved.
The second area concerns macro-financial policy, which includes raising domestic revenue by adapting excise tax rates to EU standards, assessing agricultural land, and reforming the public procurement system.
This initiative is an important part of the international financial package that provides Ukraine with the necessary resources to maintain its social and economic stability. The World Bank also works with partners in many other areas, such as health, education, transportation, energy, housing programs, private sector support, and public administration reforms.
