Finland to provide €50 million loan for Ukraine's reconstruction
Finland's Minister for Foreign Trade and Development Ville Tavio (photo: facebook.com/tavio_ville)
Finland will provide a €50 million loan for Ukraine's reconstruction and to support its economic stability. The funds will be channeled through a new World Bank Group financing program, according to Finland's Ministry for Foreign Affairs.
The financing will be provided under the Special Program for Ukraine's Recovery 2.0 (SPUR 2.0), which is part of the new International Development Association (IDA) Crisis Facility.
The loan will help strengthen the country's economic stability, support the functioning of society, and maintain the provision of essential public services during the war.
In addition, the program creates conditions for attracting private investment, preserving jobs, and supporting further economic growth.
Thanks to the IDA's high AAA credit rating and strong balance sheet, Finland's contribution will enable the World Bank to mobilize and channel a significantly larger amount of funding to Ukraine on favorable terms.
"Supporting Ukraine is both a matter of values for Finland and an investment in European security and stability. Russia's war of aggression has caused immense damage, and the international community must therefore continue its determined support to ensure the resilience of Ukrainian society and to rebuild the country," Finland's Minister for Foreign Trade and Development Ville Tavio stressed.
The decision must still be approved by the Finnish Parliament before the loan can be finalized.
According to the latest World Bank estimates, the total cost of Ukraine's reconstruction and recovery over the next decade is nearly $588 billion.
In 2023, Finland already participated in the IDA's previous SPUR program to support Ukraine and Moldova.
At the time, the country provided a €50 million loan and a €12 million grant as part of its contribution to the Crisis Facility.
Finland's Immigration Service, Migri, recently announced that it is reducing the number of reception centers for asylum seekers across the country.
The decision was explained by a decline in the number of refugees and the fact that some people have already relocated.
In addition, Finnish President Alexander Stubb said that Ukraine is in a more favorable position on the battlefield. In this context, he called on Russia to come to the negotiating table and end the war.
