The Board of Executive Directors of the world Bank on June 26 took a decision on granting Ukraine $ 350 million US in the First loan for development policy in the area of economic recovery (PPR) to support reforms that are critical to economic recovery.
This loan will also help to mitigate the impacts of the pandemic COVID-19, the Bank said.
It is reported by the world Bank.
Major reforms that are supported in the framework of the PPR include strengthening land and credit markets by creating an efficient agricultural land market and resolve bad loans in state banks; support for monopolization and anti-corruption institutions and the restructuring of the gas sector; strengthening social protection systems to support the elderly, who are particularly vulnerable to COVID-19.
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“Pandemic COVID-19 caused a rapid economic downturn affected the income of ordinary Ukrainian and small businesses and created an additional burden on the state budget,” said Arup Banerji, again, world Bank Director for Belarus, Moldova and Ukraine.
“In the framework of the development policy loan is 350 million US dollars to support the state budget in difficult times. The world Bank welcomes the government’s commitment for reforms to prepare the economy for recovery in particular, substantial steps taken for the lifting of the moratorium on sale of agricultural land and an increase in payments to vulnerable groups elderly”.
Restructuring of the gas sector by establishing an independent transmission system operator already provides Ukraine the revenues from gas transit. Strengthening anti-corruption institutions aimed at implementing the same conditions in the private sector and strengthening investor confidence. Settlement of non-performing loans in state banks will help improve the efficiency and availability of lending to Ukrainian companies, stressed in the Bank.
This outage is one of two planned loans. As expected, the second outage will be aimed at supporting the development of additional important legislation in the sphere of land reform and the further strengthening of pension payments to vulnerable population the elderly.
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PPR is part of the enhanced support provided by the world Bank of Ukraine for taking measures to overcome the consequences of COVID-19 and complements additional funding of $ 135 million US for the project “Improving health in the service of the people” and 150 million USD for the project “modernization of the system of social support of population of Ukraine “, which was recently approved by the world Bank. Also preparing a package of additional aid will have a direct impact on beneficiaries to mitigate impacts on the most vulnerable segments of the population.
The world Bank is Ukraine’s main partner for development. After Ukraine joined the world Bank in 1992, the Bank’s assistance has amounted to approximately 14 billion U.S. dollars within over 80 projects and programmes.
As reported, on June 12, has received $ 2.1 billion. the first tranche from the International monetary Fund on a new lending program.