8 Nov 2023 15:32

Ukraine to receive $550 mln under World Bank project for agricultural recovery

MOSCOW. Nov 8 (Interfax) - Ukraine and the International Bank for Reconstruction and Development (IBRD) have signed a grant and loan agreement under the World Bank's project Ukraine Agriculture Recovery Inclusive Support Emergency (ARISE), Ukrainian media reported, citing the Finance Ministry.

The funding for the project consists of a $230 million World Bank loan from the Advancing Needed Credit Enhancement for Ukraine (ADVANCE Ukraine) Trust Fund, supported by the Japanese government, and a $320 million grant from the Ukraine Relief, Recovery, Reconstruction and Reform Multi-Donor Trust Fund (URTF).

The project aims to support agricultural producers' access to financing through concessional loans and grants, the Finance Ministry said.

In all, $500 million of the total amount will be channeled to fund the Affordable Loans 5%-7%-9% Program in 2023-2024 with a focus on agricultural enterprises. The funds will help reduce the cost of borrowing for farmers.

Agricultural enterprises will also be able to receive grants, for which about $50 million is provided.