World Bank approves $610 million aid package for Ukraine

The World Bank website announced the information.

Thus, the World Bank will attract a loan of $500 million from the International Bank for Reconstruction and Development, backed by guarantees from the United Kingdom, for the project "Support to Public Expenditures for Sustainable Public Administration in Ukraine" (PEACE project).

“The additional $500 million in IBRD lending for the PEACE Project will help the Government of Ukraine with expenditures related to child and family benefits, salaries of public employees, and utility payments. Maintaining these critical public services is essential to limiting the loss of human capital and rebuilding the country and its economy after the war. To date, we estimate that 12 million people in Ukraine have benefitted from the PEACE project,” the World Bank writes.

In addition, the World Bank will support Ukraine with a new project that will help restore and improve access to healthcare services and meet urgent needs in the healthcare system.

“The Health Enhancement and Life-saving (HEAL Ukraine) Project will improve and strengthen primary health care, address the increased demand for mental health and rehabilitation services due to the war, restore and strengthen service delivery in hospitals that are facing capacity constraints, and support capacity building for key health institutions,” the statement reads.

Initial financing for this project includes a EUR 100 million loan from the IBRD, secured by guarantees from the Spanish government, as well as a USD 10 million grant from the Global Financing Facility for Women, Children, and Adolescents (GFF).

The total project financing is expected to increase to USD 500 million, starting with a USD 10 million grant from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).

World Bank Group President David Malpass noted that since the beginning of the full-scale war, the World Bank has mobilized USD 18 billion in emergency financing to support the people of Ukraine, including commitments and guarantees from donor countries, of which USD 15 billion has already been disbursed.

Earlier, on December 15,  EUR 18 billion of macro-financial assistance for Ukraine for 2023 was unfrozen at the summit of EU leaders.