Ukraine and the International Bank for Reconstruction and Development have signed a $246.5 million loan agreement under the SURGE program, “Supporting Recovery through Smart Fiscal Management.”
The funds will be drawn from the Target Fund for providing Ukraine with necessary credit support (ADVANCE Ukraine), backed by the Government of Japan.
The project aims to support the Ukrainian Government’s efforts to establish an effective system for managing public investments in the post-war recovery and reconstruction period, improve fiscal management at the local level, enhance medium-term and program-based local budgeting, and strengthen revenue administration.
It is planned that by the end of 2025, $229.7 million will be directed to the general fund of the State Budget. Part of the loan, $16.8 million, will be used to capitalize interest in order to reduce Ukraine’s debt service costs in the coming years.
The agreement was signed on behalf of Ukraine by Minister of Finance Serhiy Marchenko, and on behalf of the World Bank by Bob Som, Regional Director for Eastern Europe.
The SURGE project has been implemented in Ukraine since 2024. During this period, the World Bank has signed agreements with Ukraine totaling $760 million in financing under the project, including $10 million in grant funding.
The project is executed using the “Program-for-Results” (PforR) financial instrument, which links funding to the achievement of specific performance indicators.
“Cooperation within the SURGE project allows us not only to manage public investments and resources more effectively, but also to strengthen the financial resilience of communities, ensure transparency in the use of funds, and build taxpayer trust. I am grateful to the World Bank for supporting Ukraine and for their trust, which is the key to our shared success in reconstruction,” emphasized Finance Minister Serhiy Marchenko following the signing of the agreement.
