Today, November 22, 2022, the State Budget of Ukraine received USD 60 million in financing from the World Bank. Of these funds, USD 50 million was provided on preferential terms from the International Development Association, the rest USD 10 million – as guarantees from Latvia.
“We are grateful to the Government of Latvia and the World Bank team for supporting the financial stability of Ukraine. The attracted funds will allow Ukraine to strengthen financing for public sector employees and further ensure sustainable public administration in Ukraine,” Minister of Finance of Ukraine Sergii Marchenko said.
These loans were provided under the Agreement on the provision of financing to Ukraine within the framework of the joint project “Public Expenditures For Administrative Capacity Endurance” with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
The IDA loan has a maturity of 10 years with a 4-year grace period, a one-time fee of 0.25%, and a commitment fee of 0.25% of the undrawn balance per annum.
The loan from Latvia has a maturity of 18.5 years with a 4-year grace period, a one-time fee of 0.25% and a commitment fee of 0.25%.
The funds will be used to reimburse state budget expenditures made to pay salaries to employees of state bodies and budgetary institutions of the educational sphere, both at the national and regional level.