World Bank, Kiev working on $1 bln agreement to support Ukrainian reforms

MOSCOW. June 3 (Interfax) - A World Bank team and representatives of the Ukrainian Finance Ministry are working to agree the key parameters of a new Development Policy Operation (DPO) agreement in the amount of at least $1 billion, Ukrainian media said, citing the ministry's website.

The World Bank mission on economic policy and poverty began working in Kiev on June 2, the ministry said. The sides are discussing the new agreement to support Ukraine's reforms and cover emergency budget needs from June 2 to 6. It envisions a loan from the International Bank for Reconstruction and Development, which Ukraine will receive before the end of this year.

Ukrainian Deputy Finance Minister Olga Zykova said that around $3.5 billion was disbursed to Ukraine's state budge under the DPO mechanism through three project agreements in 2024. Those funds helped finance priority expenditures, maintain financial stability and implement important reforms, including reforms related to the country's customs and tax policy, state-owned enterprises, the energy sector, banks, and the private sector.