WB approved allocation of $350 million for Ukraine

ВБ утвердил выделение $350 млн для Украины

Photo: vsemirnyjbank.org

The world Bank actively supports reforms in Ukraine

The money will go to support the state budget in hard times, explained at the world Bank.

The Board of Executive Directors of the world Bank on June 26 took a decision on providing Ukraine with $350 million under the first loan for economic reconstruction and support for the reforms. This was reported on the website of the world Bank.

“Pandemic COVID-19 caused a rapid economic downturn, which affected the income of ordinary Ukrainians and small businesses and created an additional burden on the state budget. In the framework of the development policy loan is $350 million to support the state budget in difficult times,” said world Bank Director for Belarus, Moldova and Ukraine Arup Banerji.

It is noted that these funds should go to:

  • strengthening land and credit markets by creating an efficient agricultural land market and resolve bad loans in state banks;
  • support de-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.

This assistance is one of the two planned loans. As expected, the second part will be directed “to support the development of additional legislation in the sphere of land reform and the further strengthening of pension payments to vulnerable population.”

Earlier it was reported that Ukraine expects assistance from the world Bank in the amount of $1 billion before the end of the year. The first tranche of $350 million is due in July.

Recall that in may the Ministry of health signed a loan agreement with the world Bank to receive $135 million of the Funds will be used to purchase medical equipment, and additional funding of medical institutions and combating the spread of coronavirus.

Ukraine for the month will gain credit for $4 billion