The Ukrainian government has approved a draft joint letter with the National Bank of Ukraine to the World Bank to raise a loan of $500 million under the Second Financial Sector Development Policy Loan (FSDPL2).

According to cabinet resolution No. 830 of August 12, the Finance Ministry is responsible for the preparation of the project in general, and the Individuals' Deposit Guarantee Fund and the National Bank of Ukraine (NBU) are also attracted to work on the project.

Among the goals of the project are strengthening the operation, financial and regulatory ability of the Deposit Guarantee Fund to regulate insolvent banks, increasing the solvency of the banking system via the fulfillment of bank recapitalization and restructuring plans, and reinforcing the legal and institutional basis to increase the stability and effectiveness of the banking system.

As reported, the World Bank approved FSDPL1 of $500 million in August 2014 and it was closed in late November 2014. It was planned that FSDPL2 would be provided in early 2015.

However, the agenda of the World Bank's board for August-September has not yet included the FSDPL2 project.