World Bank to lend Ukraine USD 3 bn


The World Bank Group (WB) has received a request for support from the interim Ukrainian government and stands ready to continue supporting the Ukrainian people. The World Bank Group aims to support reforms and provide up to USD3 billion in 2014, according to the financial institution statement.
“We are committed to supporting the people of Ukraine in these difficult times and very much hope that the situation in the country stabilizes soon,” said World Bank Group President Jim Yong Kim. “We are moving forward with our pipeline of projects and aim to support the government to undertake the reforms badly needed to put the economy on a path to sustainability.”  Around USD 2 billion will be allocated to the ongoing projects. The other USD 1 billion would go directly to the government on condition it implements economic reforms to fix the financial mess. As the country’s long-term development partner, the World Bank Group has been implementing an on-going investment and guarantee program of about USD 3.7 billion, supporting improved basic public service delivery in areas such as water supply, sanitation, power and roads, and supporting the private sector. “Ukraine’s economy is facing a number of serious challenges that will require urgent action in the short term as well as sustained reform over the medium and longer term.  Priorities will need to be given to restoring macroeconomic stability, strengthening the banking sector, reforming the energy sector, seriously tackling corruption and improving accountability, enhancing the investment climate and better targeting social assistance towards the poor and the vulnerable”, the Washington-based organization said.
However Timur Nigmatullin, the Investcafe analyst, is sure Ukraine needs a much larger sum to get out of the crisis. “In order to solve the economic problems of Ukraine, needs not less than USD15-25 billion, probably nearer to USD 35 billion … Without external help we will see a Ukrainian default within the next few months,” Nigmatullin said, according to rt.com.

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