The World Bank has approved the First Job Creation and Private Sector Development Program in Ukraine
The World Bank’s Board of Executive Directors has approved the first Development Policy Operation (DPO), “Jobs in Ukraine and Private Sector Growth,” which provides for large-scale financing of 3.39 billion U.S. dollars.
This initiative is the first of two planned operations and is aimed at supporting key economic reforms for the country’s recovery and European integration.
The financial package consists of several components from international partners.
Specifically, the program 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, as well as $500 million in guarantees from the United Kingdom.
Additionally, grant financing of $2.35 billion is provided by the F.O.R.T.I.S. Financial Intermediation Fund.
International partners note the Ukrainian government’s strong commitment to economic reform.
“Despite extremely challenging conditions, Ukraine is steadily moving forward with its reform agenda, creating an environment conducive to private investment and job creation, and consistently strengthening markets and institutions to advance its aspiration to join the European Union,” said Bob Som, the World Bank’s Regional Director for Eastern Europe.
The approved program focuses on three main areas of reform.
The first area involves creating favorable conditions for private investment by updating the regulatory framework for public-private partnerships, providing financial intermediation for small and medium-sized businesses, and promoting privatization.
The second area is aimed at attracting a skilled workforce, modernizing housing policy, developing veteran-owned businesses, and expanding women’s participation in the labor market.
The third pillar aims to integrate the Ukrainian electricity market with the European market and increase transparency regarding state support for the agricultural sector.
This was reported by the bank’s press service.
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