The World Bank Allocates an Additional $1.34 Billion to Ukraine for Social Payments

The World Bank will provide Kyiv with another tranche, expected to be directed towards critically important expenditures in the Ukrainian budget. This includes pension payments, teacher salaries, and support for internally displaced persons. The package will be granted under the Public Expenditures for Administrative Capacity Endurance (PEACE).

This information is outlined in the official statement from the World Bank.

It is worth noting that the financial assistance consists of a $1.086 billion World Bank loan, directly supported by credit funds to provide necessary credit support to Ukraine, backed by the Japanese government.

Additionally, the package includes a $190 million grant from the Ukraine Relief, Recovery, Reconstruction, and Reform Trust Fund (URTF), a $20 million grant from the Swiss government, and a $50 million grant from the United States government.

'The PEACE project is an integral part of the international support package for Ukraine to meet its financing needs through 2024. Other ongoing projects include emergency operations for health, social safety nets, transport, energy, housing, and agriculture,' the Bank's statement mentions.

Recall that this week, the International Monetary Fund (IMF) approved a program review for Ukraine, allowing Kyiv to receive the third tranche of around $900 million.

'As the war prolongs, it continues to strain Ukraine’s public finances. Timely external disbursements as well as continued effort on the domestic market are key to meeting Ukraine’s financing needs and preserving macroeconomic and financial stability. In addition, decisive policy actions are needed to secure fiscal and debt sustainability,' said IMF Managing Director Kristalina Georgieva.

Earlier, the Ukrainian side signed an agreement with the World Bank representative for an additional $1.2 billion. The funds will be directed to finance 29 types of social payments for the most vulnerable segments of the population and support reforms in the social protection sphere in Ukraine. In total, the project aims to cover nearly 10 million Ukrainians.

The agreement is part of the recently launched project 'Investing in Social Protection for Inclusion Resilience and Efficiency (INSPIRE),' financed by the Targeted Fund to provide necessary credit support to Ukraine with the support of Japan.