WASHINGTON, December 17, 2021 – The Board of Directors of the World Bank today approved a loan of EUR 300 million Second Economic Recovery Development Policy Loan (DPL) for Ukraine in support of reforms critical to the country’s economic recovery and growth, and to help mitigate the effects of the COVID-19 pandemic.
The main reforms supported by the DPL include: (i) promotion of the demonopolization of the economy and the strengthening of institutions to fight against corruption; (ii) strengthening land and credit markets, including access to finance for small farmers; and (iii) strengthen the social safety net for the vulnerable elderly population to cushion the impact of the COVID-19 pandemic.
“In a context of high economic vulnerability, a slow and uneven recovery from the COVID-19 shock is underway in Ukraine, and we hope this loan will provide the necessary support for reforms aimed at fostering a stronger and more inclusive recovery” , said Arup Banerji, World Bank Regional Director for Eastern Europe. “The World Bank welcomes the important steps the government has taken to advance historic land reforms, including strengthening the transparent functioning of land markets and improving access to affordable credit for smallholder farmers. We hope that these reforms will help improve living standards by enabling some 4.6 million small Ukrainian landowners to get a fair return on and invest in their most precious asset.
This DPL is the second of two operations, the first DPL, totaling the equivalent of $350 million, approved in June 2020 to support the launch of land reform and help the Ukrainian government stimulate growth and investment in this sector, while protecting the most vulnerable against the economic shocks caused by the pandemic.
The Development Policy Loan is part of the World Bank’s increased support to Ukraine to address the impacts of COVID-19 and complements the approval of additional financing of $150 million for the COVID-19 Emergency Response and Vaccination Project approved on December 10, 2021. Since the start of the pandemic, the World Bank has provided Ukraine with a total of $2.3 billion in budget support and investment projects.
The World Bank’s global portfolio of projects supports the improvement of basic public services that directly benefit ordinary citizens, in areas such as water supply, sanitation, heating, electricity, efficiency energy, roads, social protection, education and health, as well as private sector development. . Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled more than $14 billion in approximately 80 projects and programs.