SPIRIT Project: The World Bank Has Allocated $880 Million to Ukraine for Social Protection
Ukraine will receive new funding to support the social sector. The World Bank has approved the SPIRIT project, which aims to modernize the social protection system, assist vulnerable groups, and strengthen community resilience.
This was reported by the Ministry of Social Policy, Family, and Unity.
“The World Bank’s Board of Executive Directors has approved the new SPIRIT (Social Protection for Inclusion, Resilience, Innovation, and Transformation) project, totaling $880 million, aimed at modernizing Ukraine’s social protection system, supporting vulnerable groups, and strengthening community resilience,” the statement reads.
The project will be implemented by the Ministry of Social Policy, Family, and Unity of Ukraine and will cover more than 1 million people, including low-income families, families with children, people with disabilities, the elderly, and caregivers.
Project financing includes an $860 million loan from the World Bank and $20 million in grant co-financing from the United Kingdom and Germany through the Ukraine Recovery, Reconstruction, and Transformation Fund (URTF).
The project involves the implementation of three key reforms. The first is the creation of a unified Basic Social Assistance system to replace fragmented support programs. The second is the reform of social services financing. Public funds will be allocated according to the “money follows the person” principle through the procurement of services from public, community, and private social service providers. The third is the modernization of the support system for people with disabilities. This involves a transition from a medical model of disability assessment to a person-centered approach that evaluates a person’s actual needs and expands access to rehabilitation, assistive devices, and employment support.
Prior to this, the European Union and Ukraine finalized the text of the Loan Agreement necessary for Ukraine to receive €90 billion in loan support in 2026–2027. The documents have already been submitted to the Verkhovna Rada for ratification.
The European Union is preparing to take one of the largest financial steps in support of Ukraine since the start of the full-scale war. As early as May 18, EU countries may finalize the terms of a €90 billion loan for Kyiv.
The International Monetary Fund has officially begun work in Ukraine as part of the first review of the new four-year Extended Fund Facility program.
On Thursday, the Verkhovna Rada of Ukraine adopted a draft law on the Loan Agreement and Memorandum of Understanding with the EU, which provide for financial support for Ukraine in the amount of 90 billion euros.
