New loan of 300 million euros from the World Bank to support reforms in Ukraine in the context of the COVID-19 pandemic

WASHINGTON, December 17, 2021 – The Board of Directors of the World Bank today approved an envelope of 300 million euros Second development policy loan for economic recovery (DPL) for Ukraine in support of reforms essential to the country’s economic recovery and growth, and to help mitigate the impacts of the COVID-19 pandemic.

The main reforms supported by the DPL include: (i) promoting the demonopolization of the economy and strengthening anti-corruption institutions; (ii) strengthening of land and credit markets, including access to finance for small farmers; and (iii) strengthen the social safety net for the vulnerable elderly population in order to cushion the impact of the COVID-19 pandemic.

“In a context of high economic vulnerability, a slow and uneven recovery from the COVID-19 shock is underway in Ukraine, and we hope that this loan will provide the necessary support for reforms aimed at fostering a stronger and more inclusive recovery,” said Arup Banerji, World Bank Regional Director for Eastern Europe. “The World Bank welcomes the important steps taken by the government to advance historic land reforms, including strengthening the transparent functioning of land markets and improving access to affordable credit for small farmers. We hope that these reforms will help raise living standards by enabling some 4.6 million small landowners in Ukraine to get a fair return on and invest in their most valuable asset.

This DPL is the second of two operations, the first DPL, worth a total equivalent of $ 350 million, approved in June 2020 to support the launch of land reform and help the Ukrainian government boost growth and investment in this sector, while protecting the most vulnerable from the economic shocks caused by the pandemic.

The Development Policy Loan is part of the World Bank’s increased support to Ukraine to address the impacts of COVID-19 and complements the approval of additional funding of $ 150 million for the COVID-19 emergency response and vaccination project approved on December 10, 2021. Since the start of the pandemic, the World Bank has provided Ukraine with a total of $ 2.3 billion in budget support and investment projects.

The World Bank’s global portfolio of projects supports the improvement of basic public services that directly benefit ordinary citizens, in areas such as water supply, sanitation, heating, electricity, efficiency energy, roads, social protection, education and health, as well as private sector development. Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled over $ 14 billion in around 80 projects and programs.

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