World Bank allocates another €300 million loan to Ukraine for economic development

The Board of Executive Directors of the World Bank approved a loan of 300 million euros to support reforms in the economic development of Ukraine, as well as mitigate the effects of the pandemic, follows from a publication on the organization's website.

Ukraine received its first loan under the economic development support program in the amount of $350 million in June 2020. The Ukrainian authorities were supposed to direct the money towards land reform and help the government to accelerate the growth of this sector and investments, despite the consequences of the pandemic.

The World Bank Economic Development Program (DLP) supports reforms to de-monopolize the economy and combat corruption, strengthen land and credit markets with access to small farming businesses, strengthen the social protection system for the elderly to mitigate the effects of the CORONAVIRUS pandemic.

“We expect these [land] reforms to help improve living standards by allowing Ukraine's approximately 4.6 million smallholders to earn a fair return and invest in their most valuable asset,” said Arup Banerjee, the bank's regional DIRECTOR for Eastern Europe.

Since the beginning of the pandemic, the World Bank has provided Ukraine with $2.3 billion in budget support and investment projects. On December 10, the organization approved a $150 million loan to fund a covid-19 emergency response program and vaccination campaign.