The World Bank has said that the bank could more quickly provide a second disbursement of $500 million as a part of the Second Development Policy Loan (DPL-II) – by the end of 2014, although this will require hard work of Ukrainian authorities, the Finance Ministry has reported after negotiations of Finance Minister Oleksandr Shlapak with Vice President of World Bank for Europe and Central Asia Laura Tuck in Kyiv on Sept. 19.
“Ukraine is to fulfill all conditions in next three months to receive the second disbursement in 2014,” reads the report of the ministry.
“It’s important that the macroeconomic and fiscal situation remained stable, and the cooperation program with the IMF continued,” the Ukrainian ministry said.
According to the report, representatives of the World Bank expressed hope that Ukraine will conduct the restructuring of the gas sector, the country will see positive changes and recapitalization of banks. The bank also paid attention to the implementation of the program on special protection of vulnerable social groups.
In turn, Shlapak said that Ukraine would do everything possible to fulfill these conditions, in particular, the adoption of the required laws.
As reported, the DPL–II project also aimed at supporting the realization of measures to improve solvency of the banking system via independent stress tests of 35 largest banks of the country and toughening of banking supervision.
Governor of the National Bank of Ukraine (NBU) Valeriya Gontareva said that $500 million from the World Bank would allow the full stabilization of the situation in the Individuals’ Deposit Guarantee Fund. The loan is issued for 16 years with the seven-year grace period at a small combined rate.
Tuck during her visit to Kyiv said that since early 2014 the bank has issued $2.5 billion to Ukraine and it could provide another $1 billion by the end of the year. It is expected that in October-November the Board of the World Bank will approve a project in the power transmission segment and in the healthcare sector in the volume of $300 million, and in November-December the financing to support the fiscal and institutional area development policy could be approved.
