30 years of cooperation with the World Bank

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This year, Ukraine celebrates 30 years of cooperation with the World Bank Group. On September 3, 1992, Ukraine signed the statutes of the International Bank for Reconstruction and Development, this was one of the turning points in the development of the country’s financial system.

Ukraine is a member of the five institutions of the World Bank Group: International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), International Development Association (IDA), Multilateral Investment Guarantee Agency (MIGA ), International Center for Settlement of Investment Disputes (ICSID).

The International Bank for Reconstruction and Development is Ukraine’s second largest creditor among international credit and financial organizations, after the IMF. In 30 years of fruitful cooperation, the World Bank has approved 70 loans for Ukraine for a total amount of more than 14.4 billion dollars and 2.1 billion euros, including 11.8 billion dollars and 1, 2 billion euros have been received.

The financial resources received from the World Bank are used for the financial and technical support of the state budget, to support our state in the implementation of institutional and structural reforms, and to implement long-term investment projects in the priority areas of the country’s economic development.

During the 1996-1998 period, the Bank’s support became a catalyst for laying the foundations of the modern economy and state institutions. The parties signed the Memorandum of Understanding on the World Bank’s assistance strategy for Ukraine for 1996-1998. It provided for the granting of loans for the modernization and development of the agricultural sector, the coal industry and enterprises, as well as the establishment of adequate and transparent management of state institutions and the development of market-oriented institutions.

The World Bank is an important partner of the Ukrainian government. The Bank provides financial assistance and advice for the preparation, implementation and monitoring of joint investment and system projects aimed at carrying out large-scale macroeconomic reforms in Ukraine. Over the years of cooperation, thanks to the financial support of the World Bank, the reform of government, financial and judicial systems, the demonopolization of the economy and the strengthening of anti-corruption institutions have been achieved. In addition, Bank funds have been directed towards the modernization and reform of municipal infrastructure, the energy sector, the agricultural sector, the social system, health care and the education sector.

A recent example of the success of cooperation was the stabilization of the situation in 2014. The country was in recession after the start of the aggression of the Russian Federation, which caused a significant reduction in reserves, a decrease in investments, the level of consumption, a high level of problem loans, an outflow of deposits and a fall in the national currency.

In cooperation with the Bank, the reform of the banking sector and the business environment was carried out to develop the private sector, attract new investments and direct loans towards the real sector, energy, health, social protection and water supply. Thanks to these measures, Ukraine has become more resilient to crises, as demonstrated by the pandemic. In particular, the Ukrainian economy was the only one among developing countries which, during the economic crisis of 2020-2021, caused by the COVID-19 coronavirus infection pandemic, reduced debt to GDP.

Today, the support of the World Bank is of particular importance for Ukraine, because the financial system was facing a major challenge: to ensure all priority spending under conditions of a significant drop in state budget revenues due to of a full-scale invasion.

Currently, Ukraine needs international assistance to ensure the full functioning of the financial system, finance priority social spending and support the economy. From the first days of Russia’s war against Ukraine, the World Bank has provided unprecedented support to our country, in particular, in March 2022, in a rapid manner, an additional envelope of support for Ukraine of an amount of more than 500 million euros. was approved, which was paid into the general fund of the state budget to cover urgent social and humanitarian expenses. During martial law in Ukraine, the World Bank approved three loans totaling 1.85 billion euros and 91.16 million dollars.

To provide support to Ukraine during the war, the World Bank created a new effective financial mechanism: the Multi-Donor Trust Fund, through which it was possible to attract grants totaling 1.088 billion dollars. euros and 7.5 billion dollars from countries such as the United States, the United Kingdom, Denmark, the Netherlands, Austria, Norway, Lithuania, Latvia and Iceland.

Ukraine strives to further strengthen its friendly partnership relations with the World Bank, thereby improving the lives of Ukrainian citizens through joint efforts.

We thank the Bank for the 30 years of development of the Ukrainian economy and for the effective cooperation that has helped us stabilize in the face of today’s challenges.


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