The World Bank will provide Ukraine with €236 million: how the funds will be allocated
29 May 23:57
Ukraine will receive €236 million from the World Bank to support the state budget and finance social spending. The funds are expected to be transferred to the general fund of the state budget in the near future.
This was reported by the press service of the Ministry of Finance of Ukraine, according to "Komersant Ukrainian"
The relevant loan agreement under the PEACE in Ukraine project was signed by the Ministry of Finance of Ukraine and the International Bank for Reconstruction and Development. The financing is provided under a guarantee from the Swedish government.
The funds will be directed to the general fund of the state budget. This means they will help the government finance the state’s priority needs amid a full-scale war.
How the funds will be used
According to the Ministry of Finance, the €236 million received will be used to cover the state’s key social expenditures.
Specifically, this includes:
- ensuring stable social payments;
- supporting the most vulnerable segments of the population;
- funding critical budgetary needs;
- supporting the uninterrupted operation of state institutions;
- maintaining socio-economic stability during the war.
Thus, World Bank funds are intended to help Ukraine fulfill its social obligations to its citizens even under conditions of high budgetary pressure.
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What is PEACE in Ukraine
The PEACE in Ukraine project is one of the key mechanisms for international financial support to Ukraine during the war.
Through this instrument, the government attracts funds from partners to cover critical budget expenditures, primarily of a social nature.
In fact, the program helps Ukraine ensure payments that are of particular importance to citizens during wartime: pensions, social assistance, payments to public sector employees, and other critical areas.
Guarantees were provided by Sweden
The loan agreement was signed between the Ministry of Finance of Ukraine and the International Bank for Reconstruction and Development under guarantees from the Swedish government.
This means that Sweden is one of the partners helping Ukraine secure financing to ensure the stable operation of the budget.
The Ministry of Finance emphasizes that such support is crucial for maintaining the country’s financial stability during the war.
Ukrainian Finance Minister Serhiy Marchenko thanked the World Bank and the Swedish government for their support.
“I am grateful to the World Bank and the Swedish government for their financial support. The funds raised will ensure the resilience of the state system and Ukraine’s socio-economic stability during the war, as well as guarantee timely social payments to support the most vulnerable segments of the population and the uninterrupted operation of state institutions,” Serhiy Marchenko noted.
According to the minister, the funding will help Ukraine ensure the timely delivery of social payments and the stable operation of the public sector.
When will Ukraine receive the funding?
The Ministry of Finance expects the funds to be transferred to the general fund of the state budget in the near future.
Once received, they will be allocated to specific social and budgetary needs.
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