From June 2 to 6, a team of World Bank experts, together with representatives of the Ministry of Finance and the Government of Ukraine, is working on agreeing on the key parameters of a new agreement regarding the "Foundations of Growth" Development Policy Loan. The agreement envisages attracting a loan from the International Bank for Reconstruction and Development (IBRD) in the amount of at least $1 billion in 2025.
"The World Bank is one of Ukraine’s key strategic partners in promoting systemic reforms. We continue our joint work on a new Development Policy Operation (DPO), thanks to which we will not only be able to attract the necessary resources to support the state budget, but also stimulate recovery and economic development. Last year, within this mechanism, $3.5 billion was received into the state budget. This made it possible to cover priority expenses, support financial stability, and implement important reforms, particularly those related to customs and tax policy, state-owned enterprises, the energy sector, the banking sector, and the development of the private sector," noted Deputy Minister Olga Zykova.
The DPO is a systemic project aimed at supporting reforms in Ukraine. The funds provided by the project will be allocated to the general fund of the state budget upon the fulfillment of specific conditions.
The key reforms concern strengthening the foundations of economic policy aimed at ensuring sustainable growth.
In particular, the parties discussed reform measures in the social sphere, which will be included among the conditions of the new DPO.
"Starting July 1, 2025, Ukraine will launch a pilot programme to introduce basic social assistance. This is a new type of support that will combine several existing social payments into one. Basic assistance will be provided to Ukrainian citizens who meet the eligibility criteria. The base amount will be 4,500 hryvnias."
It is expected that Ukraine will receive at least $1 billion under the project by the end of 2025. The parties agreed to continue the necessary work on implementing the DPO programme.
