The Ministry of Finance of Ukraine and the World Bank are working on a loan agreement to support the Development Policy Operation (DPO), with a planned allocation of at least $1 billion.
According to Ukrinform, citing the Ministry of Finance’s press service, a team of World Bank experts is working this week alongside representatives from the Ministry of Finance and the Government of Ukraine to finalize key parameters of the new agreement.
“The World Bank is one of Ukraine’s key strategic partners in advancing systemic reforms. We are continuing joint work on the new Development Policy Operation (DPO) agreement, which will not only help attract necessary resources to support the State Budget, but also stimulate economic recovery and development,” noted Deputy Minister Olga Zykova.
She recalled that last year, around USD 3.5 billion was disbursed to the state budget under this mechanism through three project agreements. These funds helped cover priority expenditures, support financial stability, and implement important reforms, particularly in customs and tax policy, state-owned enterprises, the energy sector, the banking sector, and private sector development.
Deputy Minister of Finance Roman Yermolychev announced the launch of a pilot program for basic social assistance, set to begin on July 1, 2025. The basic assistance will be provided to citizens who meet eligibility criteria, with a base amount of UAH 4,500. Recipients will be able to decide independently whether to switch to the new basic social assistance system.
Additionally, Yermolychev revealed that the Ministry of Finance approved a draft law on family support and birth rate promotion, scheduled for implementation next year.
“We plan not only to revise benefit amounts but also to change the approaches to supporting parents after childbirth, aiming to improve the demographic situation, raise birth rates in Ukraine, and encourage parents to actively participate in the country’s economic development,” he noted.
Ukraine is expected to receive at least $1 billion under the project by the end of 2025.
The next steps include finalizing the terms and conditions by the end of June, their implementation by Ukraine by the end of October, and approval of the financing by the World Bank Board of Directors in November.
As earlier reported by Ukrinform, the DPO is a systemic initiative designed to support reforms in Ukraine. The allocated funds will be credited to the general fund of the state budget once the outlined conditions are met.
Photo: Ministry of Finance
Source: World Bank mission begins work in Ukraine, preparing new $1B loan
