World Bank approves $1.5 bln loan for Ukraine
MOSCOW. March 27 (Interfax) - The World Bank's board of directors approved a new $1.5 billion Development Policy Loan (DPL) for Ukraine on Tuesday, Ukrainian media reported, citing the WB press release.
The loan is "credit enhanced" through the Advance Ukraine Trust Fund in the amount of $984 million, supported by Japan's Finance Ministry and guaranteed by the government of the United Kingdom in the amount of $516 million, the release said.
"Despite enormous challenges, Ukraine is undertaking challenging reforms, with an eye to cementing Ukraine's future in the European Union and ensuring the long-term prosperity of the country," the World Bank's regional vice president for Europe and Central Asia, Antonella Bassani said in the press release.
"The World Bank and international partners will continue our support to help the Ukrainian people recover and rebuild their country and economy," Bassani said.
The loan is the first of a proposed two intended to support the Ukrainian government's reforms. Among other things, it will support "policy actions to strengthen the corporate governance of state-owned enterprises, enable a fiscally sustainable and effective green energy transition, facilitate credit provision to the private sector, especially agriculture, and align Ukraine's customs regulations with the European Union," the press release said.
The program will also support the enhancement of macro-financial stability, including "policy actions to strengthen domestic revenue potential, improve capital market supervision, and safeguard against corruption risks in public procurement," the bank said.
Ukraine's state budget is expected to receive the funds by the end of March, Ukrainian media reported, citing the country's Finance Ministry on Tuesday night.
"The funds raised will be used to support the State Budget of Ukraine, restore the economy and finance priority social and humanitarian expenditures," Finance Minister Sergei Marchenko said in the press release.
The DPL is a systemic project aimed at supporting reforms in Ukraine. The funds go into the general fund of the state budget in one tranche based on the results of objectives fulfilled prior to signing.
Last week Ukraine received the first tranche of 4.5 billion euros from the EU under the Ukraine Facility program, $1.5 billion from Canada, and $230 million from Japan through the World Bank. On March 26, the country received a fourth $880 million tranche from the International Monetary Fund under an Extended Fund Facility.