World Bank preparing $650 mln policy-based guarantee for Ukraine, waiting for agreement with IMF, continuation of reforms
The World Bank at the request of the Ukrainian authorities 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," a report on the bank's Facebook page reads.
"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 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. It is also critical for the 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 document reads.
"The World Bank encourages the Ukrainian authorities to complete the pending reform actions and reach an agreement on the IMF fourth review," the bank stated.