The World Bank has approved a loan of $1.5 billion for Ukraine. The funds are to be used for agricultural loans and the development of green energy.
According to the World Bank press office, the board of directors approved a new loan for Ukraine in the amount of $1.5 billion.
The Fundamentals of Growth loan is financed by the Advance Ukraine Trust Fund ($984 million), which was funded by Japan and guaranteed by the UK government ($516 million).
As stated in the information, the loan is to be used for: reform in state-owned enterprises aimed at strengthening corporate governance, financing an effective transition to green energy, and simple and cheap loans for the private sector, especially in agriculture. It is worth noting that Ukraine will also use these funds to adapt its customs and tax regulations and procedures to the requirements of the European Union.
“Despite enormous challenges, Ukraine is implementing comprehensive reforms with a view to its undoubted future in the European Union and the country’s long-term prosperity. We highly appreciate and continue to support the Ukrainian authorities in these efforts, which have helped maintain macroeconomic stability and the ability to provide essential services to citizens. The World Bank and partners international partners will continue to provide support to help the Ukrainian people recover and rebuild their country and economy,” wrote Antonella Bassani, World Bank Vice President for Europe and Central Asia.
It can be mentioned here that Ukraine has already received USD 390 million from Japan as part of World Bank projects. These were funds for social protection and the reconstruction of agriculture from war damage.
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