The World Bank’s Board of Executive Directors approved the first Development Policy Operation (DPO) titled “Jobs in Ukraine and Private Sector Growth,” which provides for funding of $3.39 billion.
This was reported by the World Bank’s press office.
The program is the first of two planned operations under the Development Policy Operation (DPO) series, aimed at supporting economic reforms, private sector development, and job creation in Ukraine.
What Funding Will Ukraine Receive?
The total amount of support is $3.39 billion. The package includes a $1.04 billion loan from the World Bank, backed by a $540 million credit enhancement from the ADVANCE Ukraine Trust Fund with support from Japan.
In addition, the United Kingdom has provided guarantees totaling $500 million.
Ukraine will receive another $2.35 billion in grant funding from the Financial Intermediary Fund to help mobilize resources for investment in Ukraine’s recovery.
The World Bank Notes Progress on Reforms in Ukraine
Bob Som, the World Bank’s Regional Director for Eastern Europe, emphasized that even amid a full-scale war, Ukraine continues to implement important reforms.
According to him, the government is creating conditions to attract private investment, foster business development, and create new jobs. Ukraine is also consistently strengthening its markets and public institutions on the path to joining the European Union.
The World Bank noted that the new program reflects Ukraine’s significant progress in implementing reforms and will serve as an additional tool to support the country’s economic recovery.
What reforms will the program support?
The “Jobs in Ukraine and Private Sector Growth” program provides support for reforms in three key areas.
Support for the private sector and investment
The first area involves creating favorable conditions for financing and attracting investment from the private sector. To this end, the program aims to improve the regulatory framework and enhance the business environment.
Labor Market and Human Capital
The second set of reforms is aimed at attracting a skilled workforce. Specifically, this involves modernizing housing policy, expanding employment opportunities for women, and narrowing the gap between employers’ needs and workers’ skills.
Integration into the EU Market
The third area involves deepening Ukraine’s cross-border market integration with the European Union. Plans include increasing the transparency of state support for the agricultural sector, integrating the Ukrainian electricity market with the European one, and harmonizing the environmental monitoring system in line with EU standards.
Part of the International Support Package for Ukraine
The World Bank emphasized that the new program is part of a broader international financial support package for Ukraine, aimed at ensuring macroeconomic stability, implementing reforms, and reviving the economy amid the war.
The program is expected to promote private-sector development, create new jobs, and accelerate the process of European integration.
