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World Bank approves additional financial assistance to Ukraine worth $1.5 billion

Photo: agropolit.com

Photo: agropolit.com

On Tuesday, June 7, the World Bank approved a decision on additional financing for Ukraine in the amount of $1.49 billion.

This is stated in the World Bank’s report.

The bank’s Board of Executive Directors made a decision on additional financing under the Public Expenditures for Administrative Capacity Endurance in Ukraine Project.

The allocated funds will be used to pay for wages forcivil servants and teachers.

The project has benefited from financing guarantees from the United Kingdom, the Netherlands, Lithuania, and Latvia, as well as parallel financing from Italy and expected future guarantees, including from Denmark.

The project has also been co-financed by contributions to a new Multi-Donor Trust Fund (MDTF) from several countries, including Switzerland.

According to David Malpass, World Bank Group President, the bank is working with donor partners to mobilize financial support and leveraging the flexibility of various financing instruments to help provide Ukrainians with access to health services, education and social protection during wartime.

Quote"Maintaining these core services, and the ability of the government to deliver them, is essential to preventing further deterioration in living conditions and poverty in Ukraine beyond the suffering inflicted on the population because of the war," World Bank Country Director for Eastern Europe Arup Banerji noted.

The additional funding is part of a support package of over $4 billion being mobilized by the World Bank; about $2 billion of these funds have already been paid, the bank recalls.

Since Ukraine joined the World Bank in 1992, the bank's commitments to the country have reached nearly $16 billion in about 90 projects and programs, including a project approved on Tuesday.

As reported, the World Bank predicts that Ukraine's GDP in 2022 will fall by 45.1%. Prior to the outbreak of the full-scale war with Russia, the bank expected the Ukrainian economy to grow by 3.2%.

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