World Bank to give Ukraine $1.5 bln in support for reconstruction

Ukraine’s Prime Minister, Denys Shmyhal, announced that the country will receive $1.5 billion in financial aid from the World Bank. The funds will be provided with guarantees from the Japanese government and will be used to support reconstruction and recovery efforts in Ukraine, which has been facing an invasion by Russia.

The money will be directed towards crucial areas such as social security and economic development. Specifically, the loan will help provide subsidies for internally displaced people and support pension payments.

Ukraine heavily depends on financial assistance from its international partners to cover its budget deficit. Recently, the International Monetary Fund’s board approved a Ukrainian loan review, allowing Kyiv to immediately access $890 million for budget support.

Despite the challenges posed by Russia’s war on Ukraine, the government is optimistic about a modest economic recovery this year. The economy suffered a significant contraction of about one-third in 2022 due to the ongoing conflict. Ukraine is also working with foreign partners to secure financing for a ‘fast’ recovery.

Amidst the continued fighting in the south and east of the country, Ukraine remains committed to rebuilding schools, hospitals, roads, and bridges, and making necessary repairs in the energy sector. Meanwhile, international aid will play a crucial role in supporting these efforts.

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