Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

World Bank Approves $1.5 Bln Loan to Ukraine

Wed 27 Mar 2024 | 12:21 PM
Israa Farhan

Ukrainian Prime Minister Denis Shmygal has announced that Ukraine will be receiving a significant financial boost in the form of a $1.5 billion loan from the World Bank, backed by guarantees from Great Britain and Japan.

In a statement shared on his Telegram channel, the Prime Minister revealed that the World Bank's board of directors has greenlit the loan to support Ukraine's development policies.

Japan is set to provide $984 million of the total amount, with Great Britain contributing $516 million.

Shmygal expressed optimism that Ukraine would access this vital aid by the end of the current month.

With Ukraine anticipating a record budget deficit of $43.9 billion in 2024, the injection of funds from international partners is seen as crucial.

The government in Kiev intends to utilize the majority of this aid to cover its fiscal shortfall. It acknowledges that without support from Western donors, sustaining social benefits and public sector wages could become challenging.

However, delays persist on additional aid for Ukraine, with legislation in the US Congress stalled for over four months.

Despite efforts, it was only at an extraordinary summit on February 1 that the European Union finally approved a four-year financial aid package worth 50 billion euros for Kiev, following a failed attempt during a summit in December 2023.