13:08 16 Sep 2022

World Bank intends to provide Ukraine a billion dollars of additional support

In November, the World Bank may approve a package of additional financial assistance for Ukraine in the amount of 1 billion dollars. It will also consider allocating funds to finance the budget deficit and infrastructure restoration.

It was reported by the press service of the Ministry of Economy.

"The package will provide financing for 1 billion dollars — direct lending, financial guarantees, and trade finance instruments. It is expected that such financing will also mobilize private credit capital because IFC usually finances no more than 30% of the project cost, adding to commercial banks of the financial consortium," Deputy Minister of Economy Oleksandr Hryban said.

He added that in this way, the total amount of financing of projects of Ukrainian enterprises would amount to more than 3.3 billion dollars.

The World Bank is also actively working with the European fund of sustainable development (EFSD), to which they have already sent a request for $2 billion.

It is noted that these funds are also planned to be used to introduce financial instruments to support Ukraine.

And in October, during the annual meeting, the World Bank should present a trust fund to support Ukraine.

"I think that already at the stage of creating the fund, they will have a certain level of collected obligations, but I do not know whether it will be the entire volume of the fund or only a part of it. But I know for sure that the Ministry of Finance provides 36 billion dollars to cover the budget deficit for next year. This gives us hope that by the end of the year, we will have an understanding on filling this fund," added Hryban.

The Board of Directors of the World Bank will consider the decision to allocate 36 billion dollars to finance the budget deficit next year, as well as 17 billion dollars to restore the infrastructure and economy of Ukraine.

The deputy minister explained that 17 billion dollars should cover the primary needs for rebuilding critical infrastructure and ensuring foreign investment insurance.

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