World Bank to provide $1.2 billion loan to support 10 million of Ukraine’s most vulnerable citizens
The World Bank will provide Ukraine with a $1.2 billion loan that will be guaranteed by the Government of Japan.
The funds will be used to support 29 social assistance programs for the most vulnerable people in Ukraine under the Investing in Social Protection for Inclusion, Resilience, and Efficiency (INSPIRE) project.
The money will be used to support orphans, children in care, socially vulnerable students, as well as victims of the Chornobyl nuclear power plant disaster and victims of human trafficking, the bank's press service reported.
"This project is expected to reach nearly 10 million Ukrainians at a time of greatest need. It will strengthen the Ukrainian government's capacity to provide social assistance to the poor and vulnerable at a critical time when winter is approaching and millions of Ukrainians will need additional support to pay their bills and heat their homes," said Arup Banerji, World Bank Regional Country Director for Eastern Europe.
Read also: Dragon Capital halved Ukraine’s GDP growth forecast to 4.0% amid expectations of another year of war
The World Bank has already raised its growth forecast for the Ukrainian economy. The Bank expects that Ukraine's GDP to grow by 3.5% in 2023 and 4.0% in 2024. The forecast for Ukraine's economic growth in 2026 remains at 6.5%.
The World Bank announced on June 22 an additional financial support of $1.76 billion to Ukraine. The funds will be allocated to state salaries and pension payments, as well as support for vulnerable population groups.
The World Bank has already transferred $1.5 billion in aid to the Ukrainian government through the Advancing Needed Credit Enhancement for Ukraine Trust Fund (ADVANCE Ukraine), Ukraine’s Finance Ministry said on July 27.
The Finance Ministry said it expects to receive another $2 billion from the Japanese government for direct budget support through the World Bank Trust Fund.
Ukraine's external financing has already reached $32.6 billion since the beginning of 2023 and $63.7 billion since Feb. 24, 2022. It is expected that Ukraine will receive more than $42 billion in total from international partners in 2023.
We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!
Read the original article on The New Voice of Ukraine
