The World Bank’s Board of Executive Directors today approved the Third Development Policy Loan (DPL-III) for Ukraine in the amount of US$500 million, according to the information of the World Bank forwarded to UNIAN by USUBC.

The programmatic DPL series has supported reforms related to improving the investment climate, public finance, and service delivery. Some key reforms under the DPL III include the enactment of the Joint Stock Companies Law, initial steps in building a framework to rehabilitate the financial system, executive actions to reduce the high costs of regulation and inspections, executive regulation to improve the public procurement framework, and the implementation of measures to improve transparency in access to higher education.

“The measures taken by the government under the DPL series are important signals of Ukraine’s commitment to economic reform at a time of severe economic difficulties,” says Martin Raiser, World Bank Country Director for Ukraine, Belarus and Moldova. “But clearly more efforts are required going forward to implement commitments already made, improve policy coordination, and deepen structural and financial sector reforms.”

The DPL III is part of a comprehensive package of support to Ukraine to mitigate the economic downturn and lay the foundations for a sustained recovery. Key elements of this package include:

 [1] budget support,

[2] targeting more efficient spending and further deepening of structural reforms,

[3] loans to support critical infrastructure investments,

[4] technical and financial assistance to rehabilitate the financial sector, and

[5] a comprehensive program of analytical and advisory work.

The World Bank Group is working with other development partners in this endeavor.

“The challenges faced by Ukraine’s economy underscore the need to accelerate structural reforms in areas such as the business climate, the financial sector, trade diversification, land reform, competition policy, and energy security,” explains Pablo Saavedra, World Bank Senior Economist for Ukraine. 

 Moreover, he adds that “in the short-run particular attention needs to be placed on designing a prudent 2009 budget − one that targets social assistance to those in particular need and also safeguards critical capital investments.”