World Bank to loan Ukraine USD 500 mln

The World Bank will loan Ukraine USD 500 mln over 30 years at 5% p.a., according to Prime Minister Yulia Tymoshenko, who announced the signing of the agreement at a Cabinet of Ministers meeting yesterday. The loan is part of the World Bank’s third Development Policy Loan. According to Tymoshenko, the funds will be used to cover the budget deficit this year. Andrii Parkhomenko: We estimate this year’s consolidated budget deficit at UAH 9.5 bln (USD 1.4 bln), which means that the loan will only partially cover the fiscal shortfall. The loan will add 3% to Ukraine’s public debt, which is relatively low – 8.9% of GDP, as of September.