The Russian invasion has inflicted severe damage to the economy of Ukraine, with sectors that provide citizens’ basic needs such as heating, energy supply, essential medical services, and production and sale of goods, currently under extreme pressure. This is, however, being addressed through further loans and grants from international partners.
On August 10, Ukraine and the World Bank signed an agreement on providing a grant of 4.5 billion dollars. Grant funds were allocated by the U.S., as reported by the Ministry of Finance of Ukraine.
“Ukrainian Minister of Finance, Serhiy Marchenko and Regional Director of the World Bank for Eastern Europe (Belarus, Moldova, and Ukraine) Arup Banerji signed the Agreement on providing Ukraine with a grant of 4.5 billion dollars,” the Ministry of Finance stated.
The U.S. money was directed to the donors’ Trust Fund within the framework of the project ‘Support of public expenditures to ensure sustainable public administration in Ukraine’.
“I express my gratitude to the government of the United States of America and the team of the World Bank, thanks to whose efforts the Ukrainian government continues to ensure the continuous payment of salaries, social and pension payments in the conditions of the fight against the aggressor. Grant financing is significant for us, as it allows us to reduce the debt burden on the State Budget of Ukraine and to think about the post-war reconstruction of Ukraine,” Marchenko said during the signing of the Agreement.
A grant from the donors’ Trust Fund in the amount of 4.5 billion U.S. dollars will be directed to the provision of pension payments and specific programs of state social assistance, such as the payment of housing and communal services, support for low-income families, disabled children and disabled from childhood, and for the number of medical services under the medical guarantee program, etc.
In early June, the Board of Executive Directors of the World Bank approved additional financing for Ukraine for 1.5 billion dollars.
In July, the EU agreed to allocate the fifth tranche of military aid to Ukraine of 500 million euros. The member states agreed to mobilize another tranche of military assistance to support Ukraine’s Armed Forces further.
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