13:21 01.05.2020

World Bank approves issue of $150 mln to Ukraine to support low-income people amid COVID-19 pandemic

2 min read
World Bank approves issue of $150 mln to Ukraine to support low-income people amid COVID-19 pandemic

The World Bank board of directors on May 1 approved additional financing for Ukraine in the amount of $150 million under the project for modernization of the system of social support for the population of Ukraine with the aim of expanding and improving social assistance to low-income families, the need for which increased due to the COVID-19 (coronavirus) pandemic.

"Thousands of Ukrainian families are already facing difficulty paying for housing and utility services because people are losing their incomes. Pensioners can't afford to buy even basic medicines and food due to rising prices. It is important to help those people by making social payments swifter and more targeted. The additional financing will also support start-up grants for small businesses, known in Ukraine as the "Hand of Help," which will support the poor in learning new skills, finding a job, or opening a business," Alex Kremer, the World Bank Acting Country Director for Belarus, Moldova, and Ukraine, said.

"Hand of Help is an initiative developed by the World Bank and Ukraine's Ministry of Social Policy. During 2017-2018, under the ongoing Social Safety Nets Modernization Project, micro financing was provided to support people who were internally displaced as a result of the conflict in Donbas, as well as the poorest among the population. Thanks to the project, 230 people have started new businesses in Kharkiv, Poltava, and Lviv regions, and in some territorial communities in Chernihiv, Zhytomyr, and Donetsk," the report on the bank's website says.

"Some $50 million of this additional financing will be used as part of Ukraine's emergency response to the COVID-19 (coronavirus) pandemic. These funds will help ensure larger amounts and faster disbursement of cash transfers via the country's Guaranteed Minimum Income and Housing and Utilities Subsidy programs. One-off cash transfers will also be provided to the elderly and people with disabilities," according to the document.

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