The World Bank will increase the first tranche of a multi-sector project of direct budget support to Ukraine, the issue of which is scheduled for May this year, from $500 million to $750 million, reads an agreement recently achieved at talks between World Bank Managing Director Sri Mulyani Indrawati and Ukrainian Finance Minister Oleksandr Shlapak in Washington.
“The Japanese government could also in May issue co-financing for
this project… An investment loan in the amount of $382 million to
improve energy efficiency and heating is expected in May,” reads a
statement by the Finance Ministry made after the negotiations with the
World Bank on April 16.
The Ukrainian agency specifies that the projects of direct budget
support include a multi-sector loan for the policy of development and a
loan for the policy of the financial sector development.
The Ministry of Finance also announced the readiness of the
International Finance Corporation (IFC), part of the World Bank Group,
to invest up to $400 million in high-priority projects in Ukraine. In
particular, the possibility of providing credit lines to commercial
banks for further lending to the Ukrainian economy, business
development, as well as to improve energy efficiency in the country is
being considered.
“The limits could be increased significantly at the expense of the
IFC’s financing investment programs of Ukraine’s creditworthy
municipalities. Such programs may include the development of
infrastructure, improving energy efficiency, as well as other capital
spending,” the Finance Ministry said, stating that such funding will not
require government guarantees.
According to the report, the Ukrainian delegation has already agreed
with the corporation on the selection of the highest priority projects
that may qualify for such support.
