The Ministry of Finance of Ukraine and the World Bank have signed an agreement to provide grant funding totaling USD 690.8 million.
This is stated in the message of the Ministry of Finance, the Ukrainian News agency reports.
The funds were raised within the framework of the Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine Project.
The funds are part of the USD 50 billion Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism of the G7 countries. This is the last tranche from Canada under the instrument and the first from Japan.
The attracted grant funding will be transferred to the general fund of the State Budget of Ukraine in the near future
The funds will be used to reimburse key state expenditures, in particular, to reimburse pension payments and implement state social assistance programs, in particular, housing and utility subsidies.
Grant funds will be provided through contributions from international partners:
USD 544 million - contribution of the Government of Japan;
USD 146 million - contribution of Canada;
USD 0.8 million - funds from the PEACE in Ukraine Multi-Donor Trust Fund.
As the Ukrainian News agency earlier reported, the PEACE in Ukraine project has been implemented since June 2022 in response to the full-scale armed aggression of the russian federation against Ukraine and is aimed at ensuring the continuous performance of key state functions at the national and regional levels under martial law. The total amount of funding attracted within the framework of the PEACE in Ukraine project, after receiving this grant, will reach USD 51.7 billion.
The volume of international assistance will be sufficient for emission-free financing of the budget deficit.
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