Ukraine signed $350m First Economic Recovery Development Policy Loan Agreement with the World Bank

Today, the Agreement between Ukraine and the World Bank was signed. The Minister of Finance of Ukraine Sergii Marchenko and the Senior Project Portfolio Manager in Ukraine of World Bank Klavdiya Maksymenko signed an agreement on a USD 350 million loan to Ukraine from the International Bank for Reconstruction and Development (IBRD) for the systemic project Development Policy Loan for Economic Recovery (DPL). The signing of this agreement took place in the presence of the Prime Minister of Ukraine Denys Shmyhal.

The decision to lend to Ukraine was approved by the Board of Directors of the World Bank on June 26, 2020, following formal negotiations between representatives of Ukraine and the IBRD on May 27, 2020.
The funds will be used to implement measures to counter COVID-19 and finance the State Budget.

According to the Program of policy measures and results, it includes:
(1) enhancing competition and strengthening state institutions, in particular through demonopolization in the gas sector, the expansion of the infrastructure area, and the strengthening of anti-corruption institutions;
(2) strengthening the land and credit market by creating a transparent agricultural land market with appropriate guarantees of protection, strengthening the mechanism of settlement of non-performing loans and supervision of non-banking financial institutions;
(3) strengthening the social support system for the population.

Additional information
Loan proceeds of USD 350 million (excluding a one-time fee of USD 875,000) will be transferred to the general fund of the State Budget of Ukraine and will be used for the implementation of COVID-19 countermeasures.