UK to give Ukraine $500M through World Bank project

The United Kingdom will provide Ukraine with $500 million through a World Bank project to pay social assistance to families with children and pay salaries to employees of state-owned higher education institutions.

That's according to the Ukrainian Finance Ministry's press service, Ukrinform reports.

"Today, on December 23, 2022, Minister of Finance Sergii Marchenko and World Bank Regional Director for Eastern Europe (Ukraine, Belarus and Moldova) Arup Banerji signed an Agreement on the provision of the fourth Additional Financing to Ukraine under the joint project Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The loan amount is $500 million," the report said.

According to the report, the loan will be provided on concessional terms under UK guarantees: the loan maturity is 18.5 years with a five-year grace period. The interest rate is 0.25% per annum.

"The United Kingdom is one of the leaders in supporting Ukraine in the fight against Russian invaders. Thanks to such reliable partners, we have the opportunity to ensure the proper financing of priority expenditures. I am grateful to the UK Government and the World Bank team for their unwavering position in support of Ukraine. We hope for fruitful cooperation next year, which will help us to win this war," Marchenko said.

The funds will be directed to reimburse state budget expenditures for child and family benefits, salaries of employees of state-owned higher education institutions, and utility payments.