Ukraine signs multi-billion deal with World Bank: How funds will be used
Photo: The World Bank and Ukraine have signed a $3.39 billion agreement (Getty Images)
The package of agreements was signed under the First Ukraine Jobs and Private Sector Growth Development Policy Operation (DPO).
The financing will consist of two parts:
- a $1.04 billion development policy loan, of which $500 million is guaranteed by the United Kingdom and $540 million by Japan;
- and $2.35 billion in grant funding from the F.O.R.T.I.S. Ukraine FIF Fund.
The assistance was secured as a result of Ukraine fulfilling a number of conditions, including the adoption of 13 laws and 7 secondary regulations. The reforms covered the following areas:
- public procurement;
- integration of the energy market with the EU;
- development of the agricultural sector;
- support for veteran entrepreneurship;
- housing policy and preschool education.
Strategic plans for the future
Svyrydenko discussed the next stage of partnership during a meeting with World Bank President Ajay Banga.
"We are working together on the concept of the Economy of the Future — a long-term strategy that will define what Ukraine’s economy will look like after the end of the war. Another priority is modern housing policy," the Prime Minister said.
She stressed that one of the key elements for bringing Ukrainians back home is scaling up affordable mortgages and creating conditions for people to purchase their own housing.
Today, Ukraine received the first tranche of €3.2 billion from the EU’s €90 billion loan package.
The European Union previously adjusted the structure of the tranche, removing €5.9 billion from the initial package that was intended for drone production and procurement. Instead, it included billions in direct budget support.
