World Bank preparing $650 mln guarantee to support Ukraine's reforms

"At the request of the Ukrainian authorities, the World Bank is preparing a Policy-Based Guarantee (PBG) to support key policy and institutional reforms to promote economic growth, fiscal sustainability, and improved governance. Once appraised and approved, the proposed operation would provide a $650 million IBRD guarantee that is expected to help Ukraine raise about $800 million through a private transaction in the lending market," the report says.

It also notes that in order to proceed with the proposed operation, it will be necessary to confirm the completion of all reform actions and the adequacy of the macroeconomic framework.

"In this context, it is critical to enact the State-Owned Bank Law No. 8331D and the Resumption of Credit Law No. 6027D, both of which were approved by the Verkhovna Rada in July 2018," the World Bank said.

In addition, it is also critical for the Ukrainian authorities to reach agreement on the Fourth Review of Ukraine's program with the International Monetary Fund (IMF), without which the proposed operation will be unable to proceed.

The World Bank encourages the Ukrainian authorities to complete the pending reform actions and reach an agreement on the IMF Fourth Review.

As reported, a mission of the International Monetary Fund (IMF) will visit Ukraine from September 6 to September 19.

op