Ukraine’s state budget received $500 million in additional funding from the World Bank. The funds were provided on preferential terms as a guarantee from the United Kingdom, the Ministry of Finance of Ukraine reports.
The loan was given within the framework of the agreement to provide Ukraine with the third additional funding within the framework of the implementation of the joint project with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) “Supporting public expenditures to ensure sustainable public administration in Ukraine.”
The loan repayment period is 19 years with a five-year grace period. The interest rate is 0.25% per annum (charged on the unused part of the loan).
These funds will be channeled into reimbursing state budget spending on payments to public sector employees, and provision of pension payments and certain programmes of state social assistance, such as payments for housing and communal services, support for low-income families, disabled children and people disabled from childhood, and IDPs.