Ukrainian Prime Minister Denis Shmygal announced that Ukraine is set to receive a substantial $1.5 billion loan from the World Bank, backed by guarantees from Great Britain and Japan.
In a statement on his Telegram channel, the Prime Minister revealed that the World Bank’s board of directors has approved the loan to bolster Ukraine‘s development policies.
Japan will provide $984 million of the total amount, with Great Britain contributing $516 million. Shmygal expressed optimism that the aid would be disbursed by the end of the month.
This financial assistance comes at a critical time for Ukraine, as the government anticipates a record budget deficit of $43.9 billion in 2024. The majority of this deficit is expected to be covered by support from Western partners.
While Kiev acknowledges its ability to meet non-defense expenditures without Western assistance, it foresees challenges in funding social benefits and public wages without additional financial aid.
However, progress in securing aid has faced obstacles, particularly in the United States Congress, where legislation for further assistance to Ukraine has been stalled for over four months.
Additionally, the European Union initially struggled to finalize a four-year financial aid package worth 50 billion euros for Ukraine, finally reaching an agreement during an extraordinary summit on February 1 following delays since December 2023.
