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On March 26, the World Bank’s Board of Directors approved a $1.5 billion Growth Foundations Development Policy Loan (DPL) for Ukraine to support its development policy.
This is stated in an official statement by the Cabinet of Ministers of Ukraine.
“The funds will be provided under the guarantee of the Government of Japan through the World Bank Trust Fund (ADVANCE Ukraine) in the amount of $984 million, as well as under the guarantee of the United Kingdom in the amount of $516 million,” the statement says.
Also, to reduce the cost of servicing Ukraine’s credit obligations under the DPL2024 loan in the coming years, the DPL loan agreement provides for the capitalization of interest in the amount of $99.54 million from Japanese funds.
The DPL project helps support reforms in Ukraine, and the funds will be credited to the state budget’s general fund in a single tranche based on the completed tasks set before the agreement was signed.
The reforms include improving corporate governance, promoting renewable energy and introducing agricultural bonds, a new instrument for financing farmers. They also should strengthen the financial sector by improving access to finance for businesses, transposing EU customs and tax practices into Ukrainian legislation, and improving fiscal policy and capital market regulation, taking into the account the transparency and accountability of procuring entities in the e-procurement system.
Read also: Ukraine receives $880 million from International Monetary Fund
