Ukraine has received a new package of financial assistance from the World Bank amounting to $3.39 billion. The funds will be directed towards maintaining macro-financial stability and directly financing the state budget. This was announced in a statement by Ukrainian Prime Minister Yulia Svyrydenko.
Terms and details of the agreement
The signing of the agreement package took place within the framework of the first Development Policy Operation (DPO) for Jobs and Private Sector Growth. Obtaining such significant financial support was made possible thanks to Ukraine meeting a number of strict conditions. In particular, to activate the tranche, the country had to adopt 13 new laws and 7 by-laws.
The reforms conducted covered key areas of public administration and the economy, which allowed the World Bank to approve the allocation of funds in the current volume.
'Economy of the Future' Strategy
During a meeting with World Bank President Ajay Banga, Yulia Svyrydenko discussed the prospects for further partnership. The main topic of the dialogue was the development of the 'Economy of the Future' concept — a long-term strategy aimed at defining the shape of the Ukrainian economy after the end of hostilities.
One of the main priorities of the new strategy, according to the Prime Minister, is modern housing policy. According to Svyrydenko, scaling up affordable mortgages and creating conditions for acquiring own housing will become key elements in returning Ukrainians home and restoring social infrastructure.
Context of international assistance
The receipt of funds from the World Bank is taking place against the backdrop of active work with other international partners. On the same day, Ukraine received the first tranche of €3.2 billion under a loan from the European Union for a total of €90 billion.
It is worth noting that the structure of assistance from the EU was adjusted. €5.9 billion, which was planned to be allocated for the production and purchase of drones, was excluded from the initial package. Instead, the funds were redistributed in favor of direct budgetary support, which allowed for the prompt closing of the state budget deficit.
