Ukraine gets EUR 349 mln loan under IBRD's Policy-Based Guarantee
Ukraine on December 27 received a EUR 349 million loan under the Policy-Based Guarantee from the International Bank for Reconstruction and Development (IBRD).
"Today, the state budget of Ukraine received funds from a EUR 349.3 million Deutsche Bank loan under the Policy-Based Guarantee from the International Bank for Reconstruction and Development (IBRD)," Ukraine's Finance Ministry said in a statement posted on its website on December 27.
Deutsche Bank provided EUR 349.3 million loan to Ukraine in the form of two tranches: tranche A in the amount of EUR 53.2 million with four-year maturity and tranche B that totals EUR 296.1 million with ten-year maturity and a 4.5-year grace period, the ministry said.
"Under this loan, the part of the World bank's Policy Based Guarantee in the amount of euro equivalent of US$375 million out of total amount of US$750 million was used," the statement said.
Ukraine plans to get the next loan under the World Bank's Policy Based Guarantee in the first quarter of 2019.
As UNIAN reported earlier, the World Bank's Board of Executive Directors on December 18 approved a $750 million economic growth and fiscally sustainable services policy based guarantee for Ukraine to support important reforms in banking, anti-corruption, agricultural land, pensions, utility subsidies, and healthcare.
These reforms are intended to strengthen the foundations for economic growth and macroeconomic stability in Ukraine. The $750 million guarantee is expected to help Ukraine raise about $1 billion from international markets to finance the country's budget, the World Bank said.
UNIAN memo. The International Bank for Reconstruction and Development (IBRD) is a global development cooperative owned by 189 member countries. Created in 1944 to help Europe rebuild after World War II, IBRD joins with IDA, a fund for the poorest countries, to form the World Bank.
Ukraine joined the World Bank in 1992 simultaneously with jointing the International Monetary Fund and is now a member of all its structures.
Since May 2014, the World Bank Group has provided Ukraine with US$5.5 billion and a natural gas payment guarantee worth US$500 million.