Ukraine receives USD 500 mln from the World Bank

Ukraine receives USD 500 mln from the World Bank



9 вересня 2014 года
Конкорд Капитал

The Ukrainian government received on Sept. 8 a USD 500 mln, 16-year loan from the World Bank under a crisis-response support package. The funds, approved on Aug. 7, were allocated with the goal of strengthening the financial and banking sectors.



Alexander Paraschiy: The loan was conditional on a positive decision of the IMF to continue its stand-by program and was arranged shortly after the Fund wired USD 1.39 bln to Ukraine on Sept. 4. The government said it will use the funds to strengthen the financial, operational, and regulatory capacity of the Deposit Guarantee Fund (DGF) for the resolution of insolvent banks. The support will also help the authorities strengthen the supervisory framework of the banking sector to make it more efficient, transparent, and resilient.



In addition to bolstering the financial system, this loan will be very helpful in terms of balancing Ukraine’s external accounts in September. By the end of the month, authorities will have to pay back USD 1.6 bln in Eurobonds and nearly USD 190 mln to the IMF. Given that the IMF wire, coupled with the World Bank loan, will generate USD 1.9 bln in capital inflow, Ukraine is well-positioned to cover its external debts through the month.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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