Representatives of the Ministry of Finance and the World Bank Discussed Further Steps of Cooperation

Today, on May 18, 2021, the Minister of Finance Sergii Marchenko met with the World Bank Regional Country Director for Eastern Europe (Belarus, Moldova, and Ukraine), Arup Banerji.

During the meeting the parties discussed additional funding for COVID-19 pandemic control, a development policy loan for economic recovery, an agreement on improving higher education in Ukraine, and other projects that are being implemented with loan funds from the International Bank for Reconstruction and Development (IBRD).

Sergii Marchenko thanked the IBRD representatives for the support the Bank provides to Ukraine and noted the importance of the World Bank's participation in the process of reforms. It is facilitating modernizing the national economy, in particular the support of social protection, healthcare, as well as supporting the development of the transport sector in Ukraine.

As of April 1, 2021, there are 12 investment projects and one system project for the sum of USD 3,188.04 million at the stage of realization. The funds disbursements totaled USD 1,751.84 million. The IBRD portfolio of funds is the largest compared to other IFIs. Compared to 2017, IBRD loan disbursements (USD 106.33 million) increased 6.5 times to USD 693.55 in 2020. 

During the meeting, the participants discussed the status of Ukraine's completion of the terms of the Development Policy Loan for Economic Recovery (DPL). One of the requirements for obtaining the loan is the adoption of draft Law No. 2195, which will launch the process of land sales and rents. Such a law was passed at the Parliament meeting today.

In addition, during the meeting, the participants reviewed several existing projects, the status of their implementation, as well as their further implementation and possible continuation. In particular, the parties discussed the agreement "Emergency COVID-19 and vaccination in Ukraine", which provides for the allocation of USD 90 million to Ukraine within the framework of global initiative COVAX. The project will vaccinate 2 million Ukrainians and achieve the primary goal of reaching at least 20 percent of those fully vaccinated against COVID-19.

The parties also talked about the development of the new World Bank Country Partnership Strategy, which aims to achieve sustainable economic recovery and growth in the country. Arup Banerjee noted that Ukraine's strategy should include the development of the transport system, energy, and agriculture. Now the Ministry of Finance is drafting an updated report of the World Bank's systemic diagnostics of the country containing the priorities and strategic directions of cooperation of the future Bank's Partnership Program with Ukraine.

Besides, the meeting participants agreed on the necessity of financing the improvement of higher education in Ukraine and the World Bank's technical assistance and expertise in the context of the pension reform.

As a result of the meeting, agreements were reached on further cooperation on co-financing of existing and new projects.

"Continuous and systematic review of the state of project implementation contributes to the effectiveness of Ukraine's cooperation with the IBRD and the efficient use of funds provided by the World Bank. I am sure that such partnership will be continued in the future for the implementation of efficient reforms in our country", - summed up the Minister of Finance.