World Bank enhances Ukraine support in 2023
In 2023, Ukraine may receive USD 55-60 bln in macro-financial support, rapid recovery, private sector support and humanitarian assistance, says Roman Kachur, Alternate Executive Director for Ukraine at the World Bank, Interfax-Ukraine reports.
"It may sound a bit like a fantasy... I suppose it's quite real," he comments.
Roman Kachur adds that in 2022 Ukraine received about USD 31 bln in financing from the World Bank.
Next year, he notes, funding only to support the budget, as it was mostly in 2022, will be insufficient, so the WB proposes three more main directions in working with donors and within the government:
- rapid recovery, focusing on energy and transport infrastructure;
- support for the private sector, in particular for the purchase of fuels and lubricants for the sowing season;
- humanitarian support.
The bank is already working on multiplier mechanisms to turn USD 1 of donor funds into a total of USD 3-4 that will come to Ukraine.
Ukraine's representative to the WB mentioned that in the Bank's report published on June 1, the estimate of recovery needs was USD 350 bln, but in early 2023 the report will be updated and the figures will be much higher.
According to WB estimates, poverty in Ukraine will increase to 25% by the end of 2022 and may rise to 50% in 2023, while the economy will shrink by 35% this year.
