The World Bank has granted Ukraine a $750 million loan: what will the funds be used for?
13 November 23:24
The Ministry of Finance of Ukraine and the World Bank have signed three agreements worth $750 million as part of the project “Supporting Recovery through Sound Fiscal Management”. This is stated on the website of the Ministry of Finance, Komersant ukrainskyi
reports
“The implementation of the Support for Ukraine’s Recovery through Reforms in Reforms in Fiscal Governance (SURGE) project will help the Government of Ukraine improve the public investment management process, making it more efficient and transparent. This is an important step to further meet the needs of Ukraine’s recovery,” Minister of Finance Sergii Marchenko emphasized.
Ukraine and the World Bank signed three agreements within the SURGE project:
- a $450 million loan from the International Bank for Reconstruction and Development (IBRD) from the Trust Fund for Assisting Ukraine with Necessary Credit Support (ADVANCE Ukraine), supported by the Government of Japan
- a loan agreement for $300 million from the Bank’s Special Program for Ukraine and Moldova (SPUR) under the Bank’s Crisis Fund;
- a 10 million grant agreement under the investment component “Strengthening the Government’s Capacity to Implement Fiscal Reform” (STRONG) from the Multi-Donor Trust Fund for Ukraine’s Recovery, Rehabilitation, Reconstruction and Reform (URTF).
SURGE will be implemented using the Program-for-results financial instrument.
Ukraine is expected to receive $400 million by the end of the year.
Earlier it was reported that the financing will consist of a $450 million loan from the International Bank for Reconstruction and Development (IBRD) from the Trust Fund for the provision of necessary credit support to Ukraine (ADVANCE Ukraine), supported by the Government of Japan, as well as a $300 million loan from the Special Program for Ukraine and Moldova (SPUR) of the Bank’s Crisis Fund.
The financing will be provided through the Program-for-results instrument, which provides for the disbursement of funds based on the achievement of certain indicators.
Thus, the loans will be transferred to the state budget of Ukraine after verification of the fulfillment of the targets set out in international agreements.
