World Bank loans EUR 300 mln to Ukraine in reforms support
The World Bank’s Board of Executive Directors approved on Dec. 17 a EUR 300 million Second Economic Recovery Development Policy Loan (DPL) for Ukraine in support of reforms critical to the country’s economic recovery and growth, and to help mitigate the impacts of the COVID-19 pandemic.
Strengthening land and credit markets, including access to finance for small farmers, is one of the key reforms supported by the DPL.
“Amid high levels of economic vulnerability, a slow and uneven recovery from the COVD-19 shock is underway in Ukraine, and we hope this loan will provide the necessary support to reforms aimed at fostering a stronger, more inclusive recovery,” said Arup Banerji, World Bank Regional Country Director for Eastern Europe. “The World Bank welcomes the significant steps the Government has undertaken to advance historic land reforms, including strengthening the transparent functioning of land markets and increasing access to affordable credit for small farmers. We expect these reforms will help increase living standards by allowing some 4.6 mln small landowners in Ukraine to get a fair return on, and invest in, their most valuable asset.”
This DPL is the second of two operations, with the first DPL, totalling USD 350 mln equivalent, approved in June 2020 to support the launch of land reform and help the Government of Ukraine boost growth and investments in this sector while protecting the most vulnerable from the economic shocks caused by the pandemic.
As a reminder, Cargill Financial Services International, Inc. provided a EUR 250 mln loan to Ukraine.