Ukraine and World Bank Negotiate New $1 Billion Growth Support Loan
The Ministry of Finance of Ukraine and the World Bank have begun formal negotiations on a new development support agreement worth at least $1 billion, aimed at advancing key reforms and bolstering Ukraine’s economy, The Gaze reports.
The discussions, which started on June 2 in Kyiv, are part of the World Bank’s ongoing Development Policy Operation (DPO) initiative — a structured program to support systemic reforms and ensure macroeconomic stability.
Over the week (June 2–6), a World Bank mission on economic policy and poverty is holding a series of technical meetings with Ukrainian government representatives to define the final parameters of the agreement.
According to Deputy Finance Minister Olha Zykova, this DPO agreement is “not only a vital source of funding for the state budget, but also a tool to stimulate economic recovery and structural reforms.”
She recalled that in 2024, Ukraine received $3.5 billion through three similar agreements, which helped fund essential budgetary needs and reform initiatives in taxation, energy, state-owned enterprises, and the private sector.
Deputy Minister Roman Yermolychev outlined one of the key reforms under discussion: the introduction of basic social assistance, effective July 1, 2025. “This is a new form of support that will consolidate several existing social benefits into one,” he explained.
He also announced plans for a new legislative initiative to support families and encourage childbirth, scheduled for implementation in 2026. “We aim to revise benefit amounts and expand parental support after childbirth to improve the demographic situation and incentivize economic engagement among parents,” Yermolychev said.
The agreement with the International Bank for Reconstruction and Development (IBRD) — the World Bank’s lending arm — is expected to be finalized by the end of June, with Ukraine required to meet agreed-upon benchmarks by October. The financing package will then be submitted to the World Bank Board of Directors for approval in November.
If completed, this will be Ukraine’s fourth DPO operation since the start of Russia’s full-scale invasion, reaffirming the World Bank’s role as a strategic partner in Ukraine’s economic resilience and recovery.
As The Gaze previously reported, Ukraine received $432 million from the World Bank to rebuild its transportation infrastructure.
Additionally, Ukraine and the International Bank for Reconstruction and Development (part of the World Bank Group) signed a $70 million guarantee agreement aimed at enhancing the resilience of Ukraine’s energy system.