World Bank to lend $1.5 billion to Ukraine for public sector payrolls

8 May, 12:39 PM
World Bank logo (Photo:REUTERS/Johannes P. Christo)

World Bank logo (Photo:REUTERS/Johannes P. Christo)

The World Bank will provide a loan of $1.5 billion to Ukraine to make up for losses in the payroll fund of public sector workers, the Ministry of Finance announced in a Facebook post on May 7.

Specifically, the government has formed a delegation that will negotiate with the World Bank to conclude an agreement on the Public Expenditure Support project to ensure sustainable public administration in Ukraine. 

As part of the project, the International Bank for Reconstruction and Development will allocate money to reimburse state budget expenses to pay employees of state bodies and budgetary institutions at the national and regional levels.  

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On March 8, the World Bank announced that it would mobilize $700 million for Ukraine. The funds will be used for critical expenses, such as wages for hospital workers, pensions for the elderly, and social programs for those in need. 

Ukraine's GDP is forecasted to fall by 45% this year, due to the full-scale Russian invasion, and tax revenues face a similar decline, according to the International Monetary Fund. Ukraine currently faces a budget deficit of at least $5 billion per month.

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