Ukraine and the World Bank signed an agreement for $3.39 billion. The funds will be used to support the country’s macrofinancial stability and finance priority expenditures. Prime Minister Yulia Svyrydenko reported this on Telegram, Ukrinform reports. The PromPolitInform portal informs.
“On the sidelines of the URC, the Ministry of Finance of Ukraine and the World Bank concluded a package of agreements within the framework of the First Policy Program for the Development of Jobs and Private Sector Growth (DPO). Today, I thanked World Bank President Ajay Banga for his many years of support for Ukraine,” the message says.
According to Svyrydenko, the agreement provides for the provision of $1.04 billion in development policy loans, of which $500 million is secured by a guarantee from the UK, and another $540 million is secured by a guarantee from Japan.
$2.35 billion will come in the form of grant funding from the F.O.R.T.I.S. Ukraine FIF fund.
As the Prime Minister noted, these agreements were made possible thanks to extensive work on reforms. Ukraine has fulfilled the terms of the program by adopting 13 laws and 7 by-laws. These are decisions in the areas of public procurement, factoring, energy market integration with the EU, agricultural sector development, veteran entrepreneurship, housing policy, preschool and vocational education, as well as the restoration of the greenhouse gas monitoring system.
The funds received will be used to support Ukraine’s macro-financial stability and finance priority state budget expenditures.
Separately, Svyrydenko and Banga discussed the next stage of the partnership. In particular, work is underway on the concept of the “Economy of the Future” – a long-term strategy that should determine what the Ukrainian economy will be like after the end of the war.
Among the priorities is also the implementation of a modern housing policy, namely the scaling up of affordable mortgages and creating conditions for millions of Ukrainians to purchase their own homes.
Special attention was paid to privatization. Svyrydenko assured partners that Ukraine shares the approach that involves a phased, transparent and maximally profitable denationalization of assets for the country in order to attract strategic investors and increase their value, rather than selling them in a hurry.
As reported, today Ukraine received the first tranche of the EU Ukraine Support Loan in the amount of 3.2 billion euros. The funds have already been received by the state budget.
