Finland will provide a €50 million loan to the International Development Association (IDA), part of the World Bank Group, to support Ukraine’s reconstruction.
This was announced by Finland’s Ministry for Foreign Affairs.
“Financing provided through the SPUR 2.0 programme will bolster Ukraine’s economic stability, help maintain the functioning of society and contribute to reconstruction efforts as Russia continues its war of aggression,” the ministry said.
According to the World Bank’s latest estimates, the cost of Ukraine’s reconstruction and recovery over the next decade will amount to nearly $588 billion. Financing under the SPUR 2.0 programme will strengthen Ukraine’s economic stability and support reconstruction efforts in the face of Russian aggression.
“Supporting Ukraine is both a matter of values for Finland and an investment in European security and stability. Russia's war of aggression has caused immense damage, and the international community must therefore continue its determined support to ensure the resilience of Ukrainian society and to rebuild the country,” said Minister for Foreign Trade and Development Ville Tavio.
Financing through the programme makes it possible to mobilise significantly more funding for Ukraine on more favourable terms than would normally be available, thanks to the International Development Association’s strong balance sheet and AAA credit rating. As a result, Finland’s €50 million loan will enable the World Bank to provide Ukraine with a significantly larger amount of financing.
The decision to provide the loan still requires parliamentary approval.
In 2023, Finland also participated in IDA’s SPUR programme supporting Ukraine and Moldova, providing a €50 million loan and a €12 million grant through the IDA Crisis Facility.
