“The World Bank granted more than $2 billion to Ukraine: where will the funds go? The World Bank approved a new DPO operation for Ukraine for $1.05 billion and an additional grant for $1 billion. The funds will be used for economic reforms, railway development and renewable energy.”, — write on: unn.ua
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The World Bank has approved a new Development Policy Operation (DPO) for Ukraine worth USD 1.05 billion. This initiative is aimed at strengthening the basis of economic policy, which should contribute to sustainable growth and increase the financial stability of the country.
Financing of the operation is provided through the resources of the International Bank for Reconstruction and Development, strengthened with the support of Japan and the United Kingdom through the special Ukrainian trust fund ADVANCE. In addition, an additional $1 billion was provided as part of a grant from the Fund for the Promotion of Financial Intermediation of Ukraine.
This second program in a series of two initiatives aims to support the Ukrainian government in implementing important economic reforms. One of the priorities is to increase the gross domestic product per capita in order to bring Ukraine closer to EU levels and strengthen economic independence.
The operation covers two main directions. The first of them is aimed at increasing economic potential, in particular through measures in the railway sector, improving its management, intensifying investment in renewable energy sources and optimizing lending in agriculture. In addition, the qualifications of personnel in the customs sphere are being improved.
The second direction concerns macro-financial policy, which includes increasing the country’s domestic income through the adaptation of excise tax rates to EU standards, assessment of agricultural land and reform of the public procurement system.
This initiative is an important component of the international financial package that provides Ukraine with the necessary resources to support its socio-economic stability. The World Bank also works with partners in many other areas, such as health, education, transport, energy, housing programs, private sector support, and public administration reforms.
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