Today, October 4, 2022, Minister of Finance Sergii Marchenko and Regional Director of the World Bank for Eastern Europe (Ukraine, Belarus, and Moldova) Arup Banerji signed the Agreement on providing Ukraine with the Third Additional Financing as part of the joint implementation with the International Bank for Reconstruction and Development (IBRD), by the International Development Association (IDA) of the project Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE). The amount of the loan is USD 529.9 million.
These loan funds will be provided on concessional terms under the guarantees of the United Kingdom and Denmark: the loan repayment period is 19 years with a five-year grace period. The interest rate is 0.25% per annum.
"We are grateful to the Governments of the United Kingdom and Denmark, and the World Bank team, for their strong support from the first days of russian full-scale invasion of Ukraine. The funds will allow preserving the effectiveness and stability of the functioning of the Ukrainian public administration system, and in the future to finance urgent social needs in the conditions of martial law", said Sergii Marchenko during the signing ceremony.
The loan will be directed to the general fund of the State Budget of Ukraine for the reimbursement of payments to employees of the budget sector, provision of pension payments and certain state social assistance programs, support for low-income families, children with disabilities, IDPs, and for payment of medical services under the medical guarantee program, etc.
In addition, during the meeting, the parties discussed the state of implementation of the current joint projects between Ukraine and the World Bank, and the possible initiation of new joint projects to support Ukraine.