The Board of Executive Directors of the World Bank approved a loan to Ukraine in the amount of USD 1.5 billion to support the development and recovery policy.
This is stated in the bank's message, Ukrainian News Agency reports.
This loan is provided under the guarantee of the Government of Japan within the framework of the Trust Fund for Providing Ukraine with the Necessary Credit Support (ADVANCE Ukraine) and is an integral part of the package of international support aimed at meeting the country's financial needs in 2023.
The loan will help support three key areas of government reforms aimed at mitigating the effects of the Russian invasion.
First, it will help address the needs of recently impoverished and displaced families by providing support to such households.
Secondly, it addresses the resolution of issues of transparency and accountability of state expenditures.
Third, it will help markets function better both during and after the war.
The loan will contribute to the strengthening of the social protection system in Ukraine in order to support the poorest and most vulnerable segments of the population by carrying out reforms that will eliminate the risks of not including internally displaced persons (IDPs) in the housing subsidy program and ensure proper and effective administration of the system of pension payments for citizens.
The loan will also be aimed at supporting reforms aimed at increasing accountability and transparency in the use of public funds.
For example, the loan will finance reforms aimed at creating a register of damaged or destroyed property, which will make it possible to make compensation payments and manage the process of housing reconstruction in Ukraine.
It will also help strengthen the public procurement system and improve the tax reporting system to limit tax evasion and tax avoidance.
As Ukrainian News Agency earlier reported, on June 29, the state budget of Ukraine received grant funds in the amount of USD 1.215 billion through the Trust Fund of many donors of the World Bank.
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