Amid ongoing war with Russia, World Bank grants $1.5 billion loan to Ukraine for reconstruction aid
By Team Newsable | First Published Jun 30, 2023, 6:45 PM ISTUkraine PM Denys Shmyhal said the loan from World Bank will help support subsidies for internally displaced people and pension payments.
Amid the ongoing war with Russia, Ukraine will receive $1.5 billion from the World Bank to support reconstruction and recovery, Prime Minister Denys Shmyhal said on Friday. According to Shmyhal, whose nation has been invaded by Russia in February 2022, the money will be delivered with guarantees from the Japanese government and used to assist social security and economic development.
"In particular, the loan will help support subsidies for internally displaced people and pension payments," the Ukraine PM said.
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Ukraine's ability to close its fiscal deficit depends on financial assistance from its international allies. 40% of the $3 billion in budget support for Ukraine's partners came in the form of grants, according to the finance ministry.
The board of the International Monetary Fund finished reviewing Ukraine's loan on Thursday, enabling Kyiv to withdraw $890 million for budget support right away.
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After the economy contracted by approximately one-third in 2022 as a result of Russia's war on Ukraine, the administration is hoping for a slight economic recovery this year and is negotiating with foreign partners to secure financing for a so-called 'fast' recovery.
Despite ongoing war in the country's south and east, Ukraine is reconstructing its hospitals, roads, bridges, schools, and energy infrastructure.
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