12 Oct 2023 12:45

Reforms can provide up to third of Ukraine's required financing from private investors - World Bank president

MOSCOW. Oct 12 (Interfax) - Ukraine can raise more private investment for future growth by setting a clear and predictable policy in key sectors, World Bank Group President Ajay Banga said at the fourth ministerial roundtable discussion for support to Ukraine on the sidelines of the International Monetary Fund-World Bank annual meeting in Marrakech on Wednesday.

"If the right conditions are created, we estimate that as much as one-third of Ukraine's future needs could be met through private sector financing," Banga said.

Banga said that he had discussed this matter with Ukrainian Finance Minister Sergei Marchenko on the sidelines of the IMF-World Bank annual meeting on October 10.

"I was glad to hear from him that Ukraine is developing exactly such a multi-year plan, including reforms that encourage competition and accelerate alignment [of the business environment] with EU standards," he said.

World Bank Group's members International Finance Corporation and Multilateral Investment Guarantee Agency are now helping private businesses by supporting companies that trade in essential goods, providing them with working capital and financing, as well as capital investments for key infrastructure services, he said.

The potential for raising private investment exists in Ukraine's digital technology sector, where harmonized procedures and the expansion of digital infrastructure will play a crucial role, Banga said.

"We see potential in green energy, supported by tariff reforms, and in agriculture thanks to the continuing land reform that they have already begun," he said.

The World Bank Group president called for a comprehensive approach that would bring together donor countries generously financing Ukraine's social and economic needs, civil society that monitors projects in order to enhance their transparency and accountability, as well as international financial institutions and UN partners who help finance Ukraine's humanitarian and economic needs and support private businesses.

The World Bank is willing to apply the lessons learned and the innovations from working in Ukraine to help other countries, especially those in fragile and conflict-affected situations, he said.

"Lessons include ensuring sufficient resources for the government to function, prioritizing delivery of essential goods and services and working capital for businesses, and harnessing digital systems to transfer resources efficiently and accountably," Banga said.