World Bank mission has started working in Kyiv: a new $1 billion loan is being prepared
Kyiv • UNN
The World Bank mission has started working in Kyiv to prepare a new loan agreement to support development policy. Ukraine plans to receive a minimum of $1 billion by the end of 2025.
The World Bank mission has started its work in Kyiv, a new loan agreement to support development policy in the amount of at least $1 billion is being prepared, the Ministry of Finance reported, UNN writes.
The World Bank's economic policy and poverty mission began in Kyiv on June 2
Details
During the week, from June 2 to 6, a team of World Bank experts, together with representatives of the Ministry of Finance and the Government of Ukraine, as noted, will work on agreeing on the key parameters of a new agreement on a loan for the development policy "Fundamentals of Growth" (Development Policy Operation, DPO).
"The agreement envisages attracting a loan from the International Bank for Reconstruction and Development (IBRD) in the amount of at least $1 billion in 2025," the statement said.
On the first day of the mission, representatives of the Ministry of Finance, as indicated, "held fruitful discussions with the World Bank team."
It is noted that last year, within the framework of the DPO mechanism, about 3.5 billion dollars were received by the state budget under three project agreements. "This allowed to cover priority expenditures, support financial stability and implement important reforms, in particular related to customs and tax policy, state-owned enterprises, the energy sector, the banking sector, and the development of the private sector," said Deputy Minister of Finance Olga Zykova.
The funds provided for in the DPO, aimed at supporting reforms, as indicated, will be credited to the general fund of the state budget based on the results of the conditions fulfilled.
"Key reforms concern strengthening the foundations of economic policy aimed at ensuring sustainable growth," the Ministry of Finance noted.
What reforms does it provide for
In particular, the parties discussed reform measures in the social sphere, which will be included in the terms of the new DPO.
"From July 1, 2025, Ukraine will launch a pilot project to introduce basic social assistance. This is a new type of support that will combine several existing social benefits into one. Basic assistance will be provided to citizens of Ukraine who meet the criteria for receiving it. The basic amount will be 4,500 hryvnias. Recipients of assistance will independently decide on the transition to receiving basic social assistance," said Deputy Minister of Finance Roman Yermolychev during the meeting.
In addition, he informed about the approval by the Ministry of Finance of a draft law on supporting families and stimulating the birth rate, the implementation of which is planned from next year.
"We plan not only to revise the amount of payments, but also approaches to supporting parents after the birth of a child to improve the demographic situation, increase the birth rate in Ukraine, and also encourage parents to actively participate in the development of the country's economy," he said.
Results
"Ukraine is expected to receive at least US$1 billion under the project by the end of 2025. The parties agreed to continue the necessary work to implement the DPO program," the Ministry of Finance said.
The next steps, as indicated, include finalizing the terms by the end of June, their implementation by Ukraine by the end of October, and approval of funding by the World Bank's Board of Directors in November.