Ukraine to receive $3.9-bln budget assistance from U.S. shortly - Finance Ministry

MOSCOW. Aug 1 (Interfax) - Ukrainian Finance Minister Sergei Marchenko and World Bank Country Director for Eastern Europe Bob Saum have signed an agreement on the soonest provision of a U.S. grant of almost $3.9 billion to the Ukrainian budget, Ukrainian media said on Thursday, citing the ministry website.

"The drawn funds will be spent on salaries of teachers, rapid response service employees and public sector employees, as well as on support for priority social expenditures (benefits of internally displaced persons, low-income families and persons with disabilities)," the ministry said.

This is the first tranche of direct budget assistance to be received from the United States this year, the ministry said, adding that U.S. financial assistance would total $7.8 billion this year.

"The effective work of the government and the substantial support from international partners help maintain stability of the financial system. [...] I am grateful to the United States and the World Bank team for cooperation, which leads to the mobilization of crucial resources. The essential, timely financing ensures liquidity of the state budget," Marchenko said, as he commented on the agreement.

It was noted that the funds would be supplied through the World Bank's project Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine.