Ukraine attracts new tranche from World Bank for pension payments

Ukraine has attracted $841 million from the World Bank under guarantees from the government of Canada. The funds will be directed to reimburse state budget expenditures related to pension payments.

Prime Minister of Ukraine Serhiy Koretskyi announced the receipt of financing.

The money is attracted within the framework of the PEACE in Ukraine project - "Supporting public expenditures for ensuring sustainable public administration in Ukraine". Ukraine, the World Bank and Canada reached agreements on new financing in September.

On September 14, the Ministry of Finance and the World Bank signed a loan agreement on the tenth additional financing for PEACE. It provided for the allocation of $841 million to Ukraine from the International Bank for Reconstruction and Development under Canada's guarantee. Already then the Ministry of Finance noted that the funds would go specifically to compensate budget expenditures on pensions.

Now, according to Koretskyi, the financing has actually been attracted.

After this, the total volume of the PEACE in Ukraine project reached $54.3 billion. The government calls it the largest investment project in the history of the World Bank and one of the key mechanisms of support for the Ukrainian budget during the war.

Also as of the end of August, the World Bank estimated the amount of support mobilized through PEACE at about $53.5 billion. In total, since the beginning of the full-scale war, the World Bank Group has mobilized about $91 billion in financial support for Ukraine, mainly from donors and partners.

"I thank the government of Canada and the World Bank for the important and timely assistance to Ukraine in conditions of a significant budget deficit", - stated Koretskyi.

PEACE was launched after the start of the full-scale invasion by the Russian Federation. Through it, partners reimburse Ukraine for already made priority social and administrative budget expenditures, which allows the state to maintain financing of basic services and social payments.

Based on materials from: Serhiy Koretskyi, Ministry of Finance of Ukraine, World Bank