The World Bank’s Board of Directors has approved the First Development Policy Program “Ukraine Jobs and Private Sector Growth” (DPO) to support the Government of Ukraine’s reform agenda.
It aims to create conditions for attracting private finance and investment, help address labor shortages, and deepen cross-border market integration.
“This first operation in a series of two development policy programs will provide financing totaling $3.39 billion,” the bank said in a press release.
This first operation in a series of two development policy programs will provide financing totaling $3.39 billion, including a $1.04 billion World Bank loan. The loan is backed by a $540 million credit enhancement from the Trust Fund for Providing Necessary Credit Support to Ukraine (ADVANCE Ukraine) supported by the Government of Japan and a $500 million guarantee from the Government of the United Kingdom. It also includes a $2.35 billion grant from the Financial Intermediation Facility for Investing in Strengthening Ukraine (F.O.R.T.I.S.).
"Despite extremely challenging conditions, Ukraine is steadily advancing its reform agenda, creating conditions for private investment and job creation, and consistently strengthening markets and institutions to realize its aspiration to join the European Union," said Bob Som, World Bank Regional Director for Eastern Europe. "This DPO Program reflects the significant progress that Ukraine has made. The World Bank Group and our partners stand ready to provide further support for Ukraine's reform agenda, its aspirations for EU accession, and its efforts to build a more prosperous future."
The program supports Ukraine’s private-sector-led recovery by advancing reforms in three areas.
The first is to create conditions for private-sector financing and investment, including by reforming the regulatory framework governing public-private partnerships and financial intermediation for small and medium-sized enterprises, as well as through efforts to advance the privatization program.
The second is to attract skilled labor to jobs by implementing reforms to modernize housing policy, develop entrepreneurship among veterans, encourage female participation in the labor market, and reduce skills mismatches.
The third is to promote cross-border market integration by increasing transparency of agricultural support payments, integrating electricity market institutions with the EU, and aligning environmental monitoring requirements.
The Bank noted that this DPO program is an integral part of an international support package designed to help Ukraine meet its financing needs. Over the past four years, support mobilized by the World Bank—which includes robust safeguards and oversight measures, such as audits to ensure funds reach the intended recipients—has enabled the Government of Ukraine to provide critical services to more than 20 million Ukrainians, particularly in sectors such as healthcare, education, energy, housing, agriculture, and small and medium-sized enterprises.
"To reduce poverty and expand economic opportunity, the World Bank Group strives to help countries create more and better jobs. In all our projects, we help build the foundations for growth, strengthen the conditions for private sector development, and mobilize private investment where it is needed most," the bank emphasized.
Source of information: profbuild.in.ua
