Finland will provide a €50 million loan for Ukraine's reconstruction

Finland will provide a loan of 50 million euros to the International Development Association (IDA), which is part of the World Bank Group. The funds are intended to finance Ukraine’s reconstruction.

“The loan will be used to finance the IDA’s new program for Ukraine’s recovery, SPUR 2.0, which was created to meet Ukraine’s significant needs for recovery and reconstruction,” the statement said.

According to the World Bank’s latest estimates, the cost of Ukraine’s reconstruction and recovery over the next decade will amount to nearly $588 billion. Funding under the SPUR 2.0 program will strengthen Ukraine’s economic stability and support reconstruction efforts amid Russian aggression.

“For Finland, supporting Ukraine is not only a matter of values but also an investment in European security and stability. Russia’s war of aggression has caused immense damage, so the international community must continue to provide resolute support to ensure the resilience of Ukrainian society and rebuild the country,” said Minister of Foreign Trade and Development Ville Tavio.

Funding under this program allows Ukraine to secure significantly more funds on more favorable terms than usual, thanks to Finland’s strong balance sheet and AAA credit rating from the International Development Association (IDA). Thus, Finland’s 50 million euro loan will enable the World Bank to channel a significantly larger amount of funding to Ukraine.

The decision to grant the loan still needs to be approved by parliament.

In 2023, Finland already participated in the IDA’s “SPUR” program to support Ukraine and Moldova, providing a €50 million loan and a €12 million grant under the IDA Crisis Fund.

This was reported by the Finnish Ministry of Foreign Affairs.

Ukraine will receive an additional €3 billion in financial aid from the EU.

Ukraine has received a list of reforms from the EU in response to its request for funds.

Ukraine will soon receive $841 million in budget support from the World Bank. The funds will be used to cover state budget expenditures related to pension payments, and the Canadian government will provide financing guarantees.