The World Bank Will Allocate $350 Million To Ukraine
The World Bank (WB) granted the request of the government of Ukraine and decided to provide $350 million to support the country's economic recovery, according to the representative office of the World Bank in Ukraine.
"The Board of Executive Directors of the World Bank has decided to grant Ukraine $350 million in the first loan for development policy in the field of economic recovery to support reforms that are critical for economic recovery. This loan will also help mitigate the impact of the COVID-19 pandemic," the Bank said in a statement.
The funds, as specified, will be used to support reforms "to strengthen the land and credit markets by creating an effective agricultural land market and resolving problem loans in state banks; support demonopolization and anti-corruption institutions, as well as the restructuring of the gas sector; strengthen the social protection system to support the elderly, who are particularly vulnerable under COVID-19".
The world Bank noted that the loan became possible due to the adoption of the law on the sale of agricultural land in Ukraine. "Ukraine has taken the first historic step towards creating a transparent and efficient agricultural land market and unblocking investment in agriculture by adopting the law on agricultural land turnover, which was supported under this development policy loan," the press service of the representative office of the World Bank's leading economist for Belarus, Moldova, and Ukraine, Faruk Khan, was quoted as saying. He added that "to ensure transparency and efficiency of the land market, it is important to adopt and implement additional legislation aimed at strengthening land management, improving the procedure for alienation, expanding access to Finance for small farms and gradually removing restrictions on land purchases for all categories of investors."
The second loan, according to the report, will be aimed at supporting the development of "additional important legislation in the field of land reform and further strengthening pension payments to the vulnerable elderly population." The Bank recalled that the project to provide financial support complements the funding of $135 million for the project "Improving health care in the service of people" and $150 million for the project "Modernization of the social support system of the population of Ukraine," which was approved recently.
The government of Ukraine in May decided to apply to the world Bank for a loan of $350 million. The world Bank is Ukraine's primary development partner. Since 1992, the Bank's financial assistance to the country has amounted to about $14 billion in more than 80 projects and programs.