World Bank to provide EUR 236 mln loan to Ukraine under Swedish guarantee

Ukraine's Ministry of Finance and the World Bank have signed an agreement on a EUR 236 million loan within the framework of the Public Expenditures for Administrative Capacity Endurance (PEACE) in Ukraine project, backed by a state guarantee from Sweden.

The attracted financing will be directed to the general fund of Ukraine's state budget in the near future and allocated to reimburse key social expenditures of the government, the Finance Ministry said on its website on Friday.

For its part, the Swedish government announced that this guarantee, amounting to about SEK 2.5 billion, is already the second of its kind for Ukraine, while the first was provided back in 2022. Sweden was among the first countries to extend such a guarantee at that time.

"This decision was made within the framework of authorization to conclude guarantee agreements in 2026, granted to the government by the Riksdag (parliament) earlier this year," the statement said.

The PEACE in Ukraine project has been implemented since June 2022 as a response to Russia's full‑scale armed aggression against Ukraine and is intended to ensure the uninterrupted performance of core state functions at the national and regional levels under martial law. Following the disbursement of this loan, the total volume of financing mobilized under the project will reach nearly $53.5 billion, the Finance Ministry said.