World Bank to provide Ukraine with $650 mln guarantee to raise $800 mln in foreign markets
At the request of the Ukrainian authorities, the World Bank will provide Ukraine with a $650 million IBRD guarantee to raise about $800 million in foreign markets with the entry into force of certain economic laws and agreement on the fourth review of Ukraine's program with the International Monetary Fund (IMF).
"Once appraised and approved [a Policy-Based Guarantee (PBG)], the proposed operation would provide a $650 million IBRD guarantee that is expected to help Ukraine raise about $800 million through a private transaction in the lending market," the World Bank's Country Office for Ukraine said in a statement posted on Facebook on August 16.
As reported, the World Bank is preparing a Policy-Based Guarantee to support key policy and institutional reforms to promote economic growth, fiscal sustainability, and improved governance in Ukraine.
In order to proceed with the proposed operation, it will be necessary to confirm the completion of all reform actions and the adequacy of the macroeconomic framework.
"In this context, it is critical to enact the State-Owned Bank Law No. 8331D and the Resumption of Credit Law No. 6027D, both of which were approved by the Verkhovna Rada in July 2018," the statement said.
Moreover, it is also critical for the authorities to reach agreement on the fourth review of Ukraine's program with the International Monetary Fund, without which the proposed operation will be unable to proceed, it said.