Ukraine is not alone in its fight against the devastating economic impacts of the novel coronavirus.
On June 26, the World Bank approved a $350 million loan for Ukraine to support the reforms critical for the recovery of the country’s economy and to help Ukraine decrease the impact of the COVID-19 pandemic.
According to Arup Banerji, World Bank country manager in Belarus, Moldova and Ukraine, the COVID-19 pandemic is “resulting in a sharp economic downturn that is hurting the incomes of ordinary Ukrainians and small businesses, and straining the government’s budget.”
The loan, in turn, will help mitigate the economic impact of the pandemic as well as support reforms on strengthening land and credit markets, according to the World Bank.
The current loan is the first out of two planned. The next loan is expected to “support the additional important land reform legislation and further strengthen pension benefits for the elderly population.”
The three-month-long quarantine restrictions — introduced in March to prevent the spread of COVID-19 in Ukraine — have had a devastating impact on the county’s economy. The National Bank expects Ukraine’s gross domestic product to drop by at least 5% in 2020.
And while the country is on its way to lifting restrictions, gradually reopening its borders and allowing businesses to resume their work, the number of people daily infected with COVID-19 has sharply increased. In the past 24 hours, 948 people have contracted the disease. Over 1,100 people got infected on June 25.
According to officials, such a tendency may lead to the government’s decision to strengthen the quarantine measures in the country again.
