World Bank Approves $350 Million Loan to Support Reforms for Economic Recovery in Ukraine

The World Bank’s Board of Executive Directors today approved a $350 million First Economic Recovery Development Policy Loan (DPL) for Ukraine in support of reforms that are critical to economic recovery and to help mitigate the impact of the COVID-19 pandemic.

The key reforms supported by the DPL include:

• strengthening land and credit markets by creating a transparent and efficient market for agricultural land and resolving non-performing loans in state owned banks;
• fostering de-monopolization and anti-corruption institutions including by restructuring the gas sector;
• bolstering the social safety net for the vulnerable elderly population to cushion the impact of the COVID-19 pandemic.

“The COVID-19 pandemic is resulting in a sharp economic downturn that is hurting the incomes of ordinary Ukrainians and small businesses, and straining the government’s budget,” said Arup Banerji, incoming World Bank Country Director for Belarus, Moldova, and Ukraine. - This Development Policy Loan provides $350 million to support budget expenditures at a difficult time. The World Bank welcomes the Government’s commitment to these reforms to prepare the economy for recovery, including the significant steps taken to end the moratorium on agricultural land sales, and to bolster benefits for the vulnerable elderly population.”

"The Ministry of Finance welcomes the decision of the Board of the International Bank for Reconstruction and Development to allocate the first tranche. We appreciate the support of our international partners. After all, this allows us to keep Ukraine's course unchanged in carrying out political and economic reforms, which are the basis for macroeconomic stabilization and balanced growth. The funds, allocated by the IBRD, will go to the state budget, which will help us to reduce its deficit," - said Deputy Minister of Finance for European Integration of Ukraine Yuriy Geletiy.