Ukraine Will Receive USD 1.49 Billion From the World Bank to Pay Public Sector Employees
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Today, June 9, the Minister of Finance of Ukraine Sergii Marchenko and the World Bank Regional Director for Belarus, Moldova and Ukraine Arup Banerji signed a Loan Agreement with the International Bank for Reconstruction and Development and a Financing Agreement with the International Development Association for Public Expenditure management in Ukraine.
In April, the World Bank submitted a proposal to the Government of Ukraine to start preparing a new investment project to urgently support the provision of public services in Ukraine.
Under this project, Ukraine will receive a USD 1.492 billion loan with the support of the International Bank for Reconstruction and Development and the International Development Association.
The project received financial guarantees from the United Kingdom, the Netherlands, Lithuania and Latvia. Parallel funding from Italy and expected future guarantees, in particular from Denmark. This project will also be co-financed by contributions from a new multilateral donor fund to be established.
"We are grateful to the World Bank for its next contribution to support Ukraine's financial stability. It is difficult to overestimate your help, especially in the context of full-scale armed aggression in Russia. The funds raised will allow Ukraine to increase funding for public sector employees, as well as ensure sustainable public administration in Ukraine”, said Sergii Marchenko during the signing of the Agreement.
The funds will be used to reimburse state budget expenditures made to ensure the remuneration of employees of state bodies and budgetary institutions of the educational sphere, both at the national and regional levels.