To date, the World Bank Group has mobilized over $37.5 billion that is helping Ukraine to meet essential needs
WASHINGTON, June 29, 2023¡ªÅ·ÃÀÈÕb´óƬ¡¯s Board of Executive Directors today approved the $1.5 billion (DPL). This loan is guaranteed by the Government of Japan under the Advancing Needed Credit Enhancement for Ukraine Trust Fund (ADVANCE Ukraine) and forms an integral part of the international support package for Ukraine to meet its financing needs in 2023.
The lending operation will support three main areas of government reforms to mitigate the impacts of Russia¡¯s invasion. First, it will help to address the needs of the newly poor and displaced because of the war by providing relief to households. Second, it will support reforms to enhance the transparency and accountability of public resources expenditures. Third, it will help markets to function better during and after the war.
¡°Since February 2022, the World Bank has worked relentlessly with the international donor community to provide emergency financing that is helping the Government of Ukraine keep kids in school, hospitals open, and ensure basic government functions,¡± said Antonella Bassani, World Bank Regional Vice President for Europe and Central Asia. ¡°Ukraine, in turn, has shown immense resilience in the face of Russia¡¯s invasion. We commend the government for taking on difficult reforms during a war, with an eye to its future and the long-term development gains of the country. Å·ÃÀÈÕb´óƬ will continue its unwavering support to help Ukraine recover and rebuild an even stronger economy.¡±
The loan will support the strengthening of Ukraine¡¯s social protection system to provide relief for the poorest and the most vulnerable by enabling reforms that remove potential exclusions for internally displaced persons (IDPs) in the Housing and Utility Subsidy program and to ensure adequate and effective pension administration for citizens.
The loan will also support reforms that increase the accountable and transparent use of public resources. For example, the development policy loan will fund reforms to establish a damaged or destroyed property register to enable compensation payments and to guide the reconstruction of housing in Ukraine. It will also help strengthen the public procurement system and improve the country¡¯s tax reporting framework to curb tax evasion and avoidance.
Finally, the loan will bolster the ability of markets to function during wartime and to eventually contribute to economic recovery through reforms that target land, energy, and financial markets. Among other things, this will improve reporting of land transaction prices, mitigate corruption risks in public land privatization processes, enhance cost recovery in wholesale electricity markets, and strengthen financial sector stability.
Since Russia¡¯s invasion of Ukraine World Bank-mobilized support has enabled the Government of Ukraine to provide essential services that are reaching more than 13 million Ukrainians. With today¡¯s announcement the World Bank Group has now facilitated more than $37.5 billion in emergency financing in support of the people of Ukraine, including commitments and pledges from donors including: the United States, Japan, the United Kingdom, Norway, the Netherlands, Spain, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, and Belgium.
In the new fiscal year 2023-2024, the World Bank and the Government of Ukraine will implement framework projects, focusing on priority sectors for the country, including energy, health, social protection, education, housing, and agriculture.
Highlights of World Bank Support for Ukraine Since the Russian Invasion
The Public Expenditure for Administrative Capacity Endurance (PEACE) project, established in June 2022, has enabled the Government of Ukraine to sustain support for an estimated 13 million beneficiaries, including 10 million pensioners, 500,000 education employees, 145,000 government employees, 56,000 first responders, and over three million social assistance beneficiaries and IDPs. The PEACE project combines loans and grants, currently totaling $19.75 billion, from the World Bank and other development partners.
The Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF), established by the World Bank in December 2022, is a multi-donor trust fund facility supporting projects that address the country¡¯s immediate needs in, critical sectors such as transport, energy and health, as outlined in the Bank¡¯s Rapid Damage and Needs Assessment. Several projects in Ukraine have already benefitted from URTF funds, including the Restoration Project of Winterization and Energy Resources, the Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) project and the Health Enhancement and Lifesaving in Ukraine (HEAL) project.
