Ukraine to pursue USD 350 mln World Bank loan

Ukraine’s cabinet decided on May 25 to begin efforts
to pursue a USD 350 mln loan from the International Bank of Reconstruction and
Development (World Bank group) for a global economic recovery project, the
epravda.com.ua news site reported on May 28. The cabinet also approved a letter
to the World Bank to start the process.

Alexander Paraschiy: The loan is part of a large multilateral support package for Ukraine
that became possible after the government implemented all its commitments to
the IMF in late May. Next week, it’s likely that Ukraine will have finally
secured its new IMF loan program, enabling it to receive more financial support
from the World Bank, the European Commission and other official creditors. That
will also pave the way for Ukraine to attract additional financing for the
state budget on international debt markets in order to reduce the need for
domestic borrowings, the capacity for which looks limited.