World Bank Announces New $1.5 Billion Loan for Ukraine with Japanese Subsidy
The World Bank unveiled a fresh package of support for Ukraine worth 1.5 billion dollars, subsidized by Japan. The loan is designed to address the needs of those newly affected by the ongoing war, strengthen transparency and accountability in public spending, and help markets function more effectively during and after the crisis. (World Bank)
European and Middle East Vice President Antonella Bassani of the World Bank emphasized that, since February 2022, the institution has been collaborating with the international donor community to deliver emergency financing. This aid helps the Government of Ukraine keep essential services running, including keeping schools open and maintaining hospital operations, while supporting core government functions. Bassani noted Ukraine’s resilience in the face of invasion and praised the government for pursuing tough reforms in the war period, stressing the country’s long-term development gains. The World Bank reaffirmed its commitment to support Ukraine’s recovery and the rebuilding of a stronger economy. (World Bank)
Since the onset of the conflict, the World Bank has provided more than 37.5 billion dollars in assistance, aiming to support roughly 13 million Ukrainians. The list of contributing donor nations includes the United States, Japan, the United Kingdom, Norway, the Netherlands, Spain, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, and Belgium. (World Bank)
The funds will flow through the Public Expenditure on Resilience of Administrative Capacity (PEACE) Project in Ukraine, which the World Bank notes has allocated a substantial portion of its resources to date. These resources also support Ukraine’s Relief, Recovery, Reconstruction and Reform Trust Fund (URTF), targeting the most vulnerable populations and sectors such as transport, energy, and health. The ongoing effort seeks to align immediate relief with longer-term reforms, ensuring better governance and more resilient public services. (World Bank)
The collaborative financial push coming from major international partners, including Canada and other allied nations, reflects a shared strategy to sustain Ukraine’s stability while enabling reforms that improve public sector efficiency and service delivery. By channeling funds through established programs like PEACE and URTF, Ukraine can address urgent needs today while laying groundwork for a more resilient future tomorrow. (World Bank)