World Bank Allocates First $2 Billion Tranche to Ukraine, Partially Funded by Frozen Russian Assets
The World Bank has approved a $2.05 billion loan to Ukraine for financial stability, reforms and investment promotion, including from a fund replenished with proceeds from frozen Russian assets.
This is stated in an official statement by the World Bank released on Wednesday.
‘The World Bank's Board of Executive Directors has approved a Development Policy Operations (DPO) for Ukraine to strengthen the economic policy framework for sustainable growth and improve financial stability,’ the statement said.
The operation provides for the allocation of $1.05 billion using IBRD resources, credit-enhanced through the Advancing Needed Credit Enhancement (ADVANCE) Ukraine Trust Fund with the support of Japan and the United Kingdom. The operation is also co-financed by a $1 billion grant from the Fund for Opportunity Resources for Investment in Financial Intermediation Strengthening Ukraine (F.O.R.T.I.S. Ukraine FIF).
The DPO programme aims to support reforms in Ukraine to strengthen the country's economic potential and improve macro-financial stability. This initiative supports the authorities' efforts to increase Ukraine's GDP per capita to bring it closer to the EU level and strengthen the country's economic independence.
Earlier, on 10 December, the US Treasury announced a $20 billion loan to Ukraine as part of a $50 billion G7 initiative to use frozen Russian assets.