Minister of Finance of Ukraine meets with World Bank Representatives to Discuss Further Cooperation and a Loan from the IBRD

September 8, 2021, the Minister of Finance of Ukraine Sergii Marchenko met with the World Bank Regional Country Director for Eastern Europe (Belarus, Moldova, and Ukraine) Arup Banerji.

The deputy of the Minister of Finance for European Integration Yuriy Draganchuk and Deputy Finance Minister Alexander Kava also took part in the meeting.

The parties discussed the allocation of additional funding for combating the pandemic COVID-19, reform of the financial and banking sector, the implementation of pension reform in Ukraine, and the conditions for obtaining the Second Development Policy Loan (DPL).

The Ministry of Finance of Ukraine and the World Bank signed an agreement in June 2021 on a USD 350 million loan to Ukraine from the International Bank for Reconstruction and Development for the First Development Policy Loan in the Economic Recovery Project.

Representatives of the Ministry of Finance and the World Bank had a conversation about receiving the Second Development Policy Loan in the Sphere of Economic Recovery". Arup Banerji said that the next DPL will focus on "green transition" and the implementation of energy sector reforms. In addition, the Regional Director stressed that the Bank is waiting for proposals from the Ukrainian side on possible projects to raise funds.

At the same time, Sergii Marchenko noted that one of the priorities of the Ministry of Finance is the implementation of pension reform in Ukraine.

"We want to implement a two-level pension system. The first level will be a government pension, and we plan to involve private funds in the second level. But to start the implementation of this reform we should be sure that we will be able to control these processes and guarantee the efficiency of the system".

The World Bank team noted that they are ready to support Ukraine at every stage of the reform of the pension system.

The parties discussed the agreement "Emergency COVID-19 and vaccination in Ukraine". Arup Banerji noted that the Bank is ready to grant Ukraine USD 150 million in December 2021 within the framework of the global initiative COVAX.

Also, the issue of the World Bank Country Partnership Strategy was raised. It aims at achieving sustainable economic recovery and growth in the country. World Bank Regional Director said that the priority areas should be energy, agriculture, and transport system. The Ministry of Finance continues working on the draft of the updated report of the World Bank's systemic diagnostics of the country, which specifies the strategic directions of the future partnership between the Bank and Ukraine.

The representatives of the Ministry of Finance of Ukraine and the World Bank agreed to immediately start the work on the system project Second Development Policy Loan in the sphere of economic recovery and continue active communication in the realization of existing joint projects.