Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

WB: Reconstruction of Ukraine Requires $441 Bln


Wed 22 Mar 2023 | 06:43 PM
World Bank
World Bank
Nada Mustafa

The World Bank (WB) confirmed on Wednesday that the reconstruction of Ukraine requires $411 billion. 

It is worth mentioing that, Ukraine and the International Monetary Fund (IMF) agreed on a $15.6 billion loan package aimed at tapping into more support by reassuring allies that Ukraine pursues strong economic policies and fights corruption.

Ukraine's Finance Ministry said on Wednesday that the program will "help to mobilize financing from Ukraine’s international partners, as well as to maintain macro-financial stability and ensure the path to post-war reconstruction after Ukrainian victory in the war against the aggressor.”

On Tuesday, the IMF said in a statement that the loan program would last for four years, with the focus of the first 12 to 18 months on helping Ukraine plug its huge budget deficit and ease the pressure to print money for spending.

The Washington-based IMF said Ukrainian authorities demonstrated their commitment to healthy economic policy and met all agreed-upon goals during a preliminary consultation.

The loan program goes beyond previous IMF practice by lending to a country at war, under new rules that allowed assistance due to circumstances of “exceptionally high uncertainty.”

Ukraine has dramatically increased military spending while the economy shrank by about 30% in 2022, hurting tax revenue.