05.Oct .2022 10:30

Ukraine to receive almost $530M from World Bank

Ukraine to receive almost $530M from World Bank
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Ukraine will receive $529.9 million from the World Bank in additional funding for urgent needs. A corresponding agreement was signed by Minister of Finance of Ukraine Serhiy Marchenko and World Bank Regional Country Director for Eastern Europe (Belarus, Moldova and Ukraine) Arup Banerji, the Ministry's press service reports.

It is noted that a $529.9 million loan will be provided on preferential terms under the guarantees of Great Britain and Denmark: the loan repayment period is 19 years with a five-year grace period. The interest rate is 0.25% per annum (charged on the unused part of the loan).

"The raised funds will make it possible to preserve the effectiveness and stability of the functioning of the Ukrainian public administration system and to continue to finance urgent social needs in the conditions of martial law," Marchenko said during the signing ceremony.

The loan funds will be transferred to the general fund of the state budget of Ukraine for the reimbursement of payments to employees of the budget sector, provision of pension payments and certain state social assistance programs, support for low-income families, disabled children and people disabled from childhood, IDPs, as well as payments for healthcare services under the healthcare guarantee program, etc.

As reported, the World Bank may approve a $1 billion package of additional financial assistance to Ukraine in November 2022, Ukrinform reports.