World Bank greenlights $1.34 billion boost in aid for critical public services in Ukraine
World Bank on Dec. 14 announced it would allocate an extra $1.34 billion in financial aid to bolster critical public services at the national and regional levels in Ukraine.
Read also: World Bank to provide $1.2 billion loan to support 10 million of Ukraine’s most vulnerable citizens
The financing package, provided under the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) project, is geared towards supporting crucial needs like pensions for the elderly, grants for internally displaced persons, and salaries for teachers, first responders, and emergency services personnel.
The financing package includes a $1.086 billion World Bank loan, backed by the Advancing Needed Credit Enhancement for Ukraine Trust Fund (ADVANCE Ukraine), which is supported by the Japanese government.
Read also: Biden, Zelenskyy to discuss Ukraine aid crisis in White House talks
The package also includes a $190 million grant from the Ukraine Relief, Recovery, Reconstruction, and Reform Trust Fund (URTF), a $20 million grant from Switzerland; and a $50 million grant from the United States. The funds will be transmitted to Ukraine once the World Bank gets the green light after verifying eligible expenditures.
The PEACE project is a vital part of the international support package to help Ukraine cover its financing needs up to 2024. There are also ongoing projects spanning emergency operations for health, social safety nets, transport, energy, housing, and agriculture.
The mobilized partners' assistance package has a flexible design for quick distribution of funds, and is ready to scale up when more financing becomes available.
Since Russia's invasion of Ukraine, the World Bank has been a crucial player, aiding the Ukrainian government in delivering essential services to over 15 million Ukrainians.
The World Bank has already brought in over $39 billion in emergency financing to back Ukraine, with commitments and pledges from donors such as: the United States, Japan, the United Kingdom, Norway, the Netherlands, Spain, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Iceland, Ireland, Indonesia, Lithuania, Latvia, Belgium, and South Korea.
The World Bank has already raised its growth forecast for the Ukrainian economy. The Bank expects 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%.
Read also: Zelenskyy explores collaboration with World Bank President during US visit
Previously, the World Bank transferred $1.5 billion in aid to the Ukrainian government through the ADVANCE Ukraine Trust Fund, Ukraine’s Finance Ministry said on July 27.
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 provision of a $1.2 billion World Bank loan to Ukraine, guaranteed by the Japanese government, was reported on Dec. 1.
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