World Bank Approves $1.2 Bln in Loan to Support Social Assistance Programs in Ukraine
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MOSCOW (Sputnik) - The World Bank on Thursday approved $1.2 billion in a loan to support 29 social assistance programs for the most vulnerable people in Ukraine, affected by ongoing hostilities.
Since the start of the Russia's special military operation in February 2022 Western countries and institutions have been providing to Ukraine both military and financial aid. Yet another money injection now comes from the World Bank.
"A new World Bank project, Investing in Social Protection for Inclusion, Resilience, and Efficiency (INSPIRE), approved today, will provide additional support to 29 social assistance programs targeting the most vulnerable people in Ukraine... The INSPIRE project is financed by a $1.2 billion World Bank loan, backed by a credit enhancement from the Advancing Needed Credit Enhancement for Ukraine (ADVANCE Ukraine) Trust Fund, supported by the Government of Japan," the World Bank said in a release.
The World Bank added that the project targets "people with disabilities, orphans, children under guardianship, foster families, socially vulnerable students, and victims of the Chernobyl nuclear disaster and human trafficking." The project also aims to support the Ukrainian government's reform efforts "to improve the coverage and efficiency of important social safety net programs, such as the Guaranteed Minimum Income, Housing and Utilities Subsidy, and Internally Displaced Persons assistance program," the release said.
"This project is expected to reach almost 10 million Ukrainians at a time of greatest need. It will strengthen the Government of Ukraine’s capacity to provide social support to the poor and vulnerable at a critical time, when winter is coming and millions of Ukrainians need additional support to pay their bills and heat their homes," World Bank Regional Country Director for Eastern Europe Arup Banerji was quoted in the release as saying.
Since the beginning of Russia's special military operation in Ukraine in February 2022, the support mobilized by the World Bank has enabled Ukrainian authorities to provide essential services to over 15 million Ukrainians, the release said, adding that the World Bank has facilitated more than $38 billion to support Ukraine, including the new funds.
The World Bank also said in a report dubbed "The World Bank and Ukraine: Laying the Groundwork for Reconstruction in the Midst of War" on Thursday that $29 billion out of $38 billion in the Bank's financing commitments and pledges for Ukraine had been disbursed by November 2023. The Bank said the funds have helped to maintain core functions of Ukraine's government, pay 98.5% of pensions on time, pay over 90% of government employees on time, as well as distribute 2.4 million doses of routine vaccines for children under seven and procure 28 million COVID-19 vaccines.
