World Bank Preparing Policy-Based Guarantee To Support Reforms In Ukraine For USD 800 Million

The World Bank is preparing Policy-Based Guarantee (PBG) to support reforms in Ukraine for USD 800 million.

The World Bank announced this in a statement, Ukrainian News Agency reports.

“At the request of the Ukrainian authorities, the World Bank is preparing a Policy-Based Guarantee (PBG) to support key policy and institutional reforms to promote economic growth, fiscal sustainability, and improved governance. Once appraised and approved, the proposed operation would provide a USD 650 million IBRD guarantee that is expected to help Ukraine raise about USD 800 million through a private transaction in the lending market,” reads the statement.

In order to proceed with the proposed operation, it will be necessary to confirm the completion of all reform actions and the adequacy of the macroeconomic framework.

In this context, it is critical to enact the State-Owned Bank Law No.8331д and the Resumption of Credit Law No.6027д, both of which were approved by the Verkhovna Rada in July 2018.

“It is also critical for the authorities to reach agreement on the Fourth Review of Ukraine’s program with the International Monetary Fund (IMF), without which the proposed operation will be unable to proceed,” reads the statement.

The World Bank urges the Ukrainian authorities to complete the pending reform actions and reach an agreement on the IMF Fourth Review.

As Ukrainian News Agency earlier reported, the World Bank says Ukraine needs to attract USD 8 billion the lending market in 2018-2019.