World Bank provides $500 mln, urges Ukraine to boost reforms

The World Bank’s Board of Executive Directors approved on September 15 a $500 million loan to support Ukraine's financial sector, according to the Bank's press service.

“Bringing back stability and economic growth to Ukraine will only be possible if the country stays on the path of reforms,” said Qimiao Fan, World Bank Country Director for Belarus, Moldova, and Ukraine, reads the press release.

“Our new operation will help this goal by supporting a number of measures to stabilize the country’s financial sector and create a healthier banking sector," said Fan.

“The Ukrainian authorities have taken some impressive steps to stabilize and reform the economy and we are now seeing tentative signs of stabilization”, said the official. “However, because the challenges are so unprecedented, it is critical that the authorities continue to accelerate reforms.”

This operation is part of the World Banks broader financial support package announced in February this year, which aims to provide Ukraine with up to US$2 billion in 2015. With the approval of this operation, the World Bank will have delivered $1.215 billion to Ukraine in 2015, including $1 billion direct budget support.

The World Bank is a major development partner of Ukraine. With this new budget support operation, the Bank’s current financial support to the country amounts to about $4 billion. Development policy operations support critical reforms recently undertaken by the government, and the current Bank's portfolio of investment projects are improving basic public services that directly benefit people of the country, such as water, sanitation, heating, power, roads, social assistance programs and health services.