World Bank loan to Ukraine, guaranteed by the UK and Japan
The World Bank has approved a substantial support package of $3.39 billion for Ukraine, intended to bolster the country’s macro-financial stability and finance essential budget expenditures.
This package includes $1.04 billion designated as development policy loans, with $500 million guaranteed by the United Kingdom and an additional $540 million pledged by Japan. Furthermore, $2.35 billion will be provided in grant funding from the F.O.R.T.I.S. Ukraine FIF fund.
According to Ukrainian Deputy Prime Minister Yulia Svyrydenko, these agreements were made possible through Ukraine’s fulfillment of certain program conditions, including the passage of 13 laws and seven regulatory acts focused on reforms in public procurement, energy, agriculture, education, housing policy, veteran entrepreneurship, and environmental monitoring.
The government also discussed future collaboration with the World Bank, outlining a concept for a “Future Economy” that aims to establish a long-term development model for Ukraine post-war.
Additional priorities include reforming housing policy, expanding affordable mortgage options, facilitating the return of Ukrainian citizens, and ensuring transparent privatization of state assets with the involvement of strategic investors.
Context
- Previously, the World Bank indicated that it had approved a new support program for Ukraine worth $3.39 billion, aimed at strengthening the economy during the war and preparing for recovery. The program’s goals include fiscal stability, private sector development, job creation, and attracting investment.
