Ukraine plans to get US$300 mln loan from World Bank to tackle pandemic fallout

Envoy of the Cabinet of Ministers to the Verkhovna Rada Vasyl Mokan has said the government approved the draft presidential decree "On Ukraine's delegation to participate in negotiations with the International Bank for Reconstruction and Development (IBRD) (part of the World Bank Group) regarding the conclusion of a loan agreement, as well as the relevant draft government decree.

The decisions were made at today's extraordinary government meeting, Mokan wrote on Facebook.

"The draft decree envisages that it is expedient to attract a loan from the IBRD for the implementation of the investment project 'Second additional financing aimed at overcoming the consequences of the COVID-19 pandemic,' as well as attracting US$300 million for the project 'Modernization of the social support system for the population of Ukraine'," the envoy wrote.

According to the official, the funds will allow the government to attract additional funds to enhance social assistance and social services in Ukraine.

Read also"No money to cover it": Ex-cabinet official comments on cost of possible lockdownTo this end, emergency cash handouts are envisaged for individuals and households who have lost their jobs or sources of income due to the COVID-19 pandemic; supporting poor households with the help of the country's existing program of State social assistance to low-income families; strengthening social protection delivery systems and institutions to improve future responsiveness.

Background

The World Bank's Board of Directors on April 27 approved US$135 million in additional financing for the Serving People, Improving Health Project, to scale-up Ukraine's health sector response to the COVID-19 pandemic.

In 2015, Ukraine and the International Bank for Reconstruction and Development signed an agreement to implement the Serving People, Improving Health Project for Ukraine. Within its framework, Ukraine is set to receive US$215 million worth of assistance.