Ukraine has received a $1.5 billion loan to support the "Growth Foundations" development policy from Japan and the United Kingdom through the World Bank mechanism.
This information was reported by the Ministry of Finance press service.
The funding consists of a guarantee from the Government of Japan through the World Bank's Targeted Fund (ADVANCE Ukraine) in the amount of $984 million and a guarantee from the United Kingdom for $516 million.
A total of $1.4 billion has been received into the general fund of the state budget. To reduce the cost of servicing Ukraine's debt obligations, the program includes capitalization of interest from Japanese funds in the amount of $99.54 million.
"The effective work of the Government, along with timely support from partners, allows us to maintain stability in the financial system, even in the face of full-scale aggression and daily terror from the Russian Federation. I am grateful to Japan, the United Kingdom, and the World Bank team, who have stood shoulder to shoulder with Ukraine since February 2022. The funding raised will be directed to support the key priorities of the state budget," said Minister of Finance of Ukraine Serhiy Marchenko.
The precondition for receiving the tranche was Ukraine's fulfillment of eight necessary requirements under the program, including harmonizing Ukraine's customs and tax legislation with EU norms, improving fiscal policy and capital market regulation, and ensuring transparency and accountability in the electronic procurement system.
It is worth noting that on March 26, the Board of Directors of the World Bank approved the DPL Loan, after which the Minister of Finance of Ukraine Serhiy Marchenko and the World Bank Regional Director for Ukraine, Belarus, and Moldova, Europe and Central Asia Region, Arup Banerji, signed the relevant Loan Agreement.
